Constructive gadfly
Surprise
Published on November 29, 2008 By stevendedalus In Politics

 

It may come as a surprise that I am against the earned income tax credit as I believe from newspaper boy of working paper age to part-time dollar store worker should pay at least a token tax when they meet a threshold of $50 per week and thus subject to withholding, plus social security and Medicare. Many would argue that the IRS cost factor of dealing in petty cash would be prohibitive—to an extent true— but the indoctrination of everyone’s having to share in government costs would help build responsible citizens and remove the scourge of a free ride.

However to be fair to the impoverished, I propose a 5% flat tax subject to withholding up to 15K so that the paper boy—a dependent on a parents’ tax form notwithstanding—who makes at least 200 dollars a month including a mandatory 10% tip estimate—would be subject to withholding along with a special 2% Fica.

Normal part-time or low wage earners whether a zero dependent or not would be subject to the same flat 5% withholding and special Fica but beyond 15K a marginal table of 1% increments per 1K and at 20K the full effect of Medicare and Social Security would kick in. The continuance of the 1% increment would result in a marginal tax withholding at 15% for 25K and 20% for 30K. Under these guidelines, together with the already generous deductions for dependants in determining taxable income make the Earned Income Credit redundant but at the same time not appear as paying no tax at all.

Copyright © 2008 Richard R. Kennedy All rights reserved. Revised: Nov 29,  2008.

http://stevendedalus.joeuser.com

http://www.lulu.com/rrkfinn


Comments
on Nov 29, 2008

I have issues with taxing underaged people sorry... but if your going to tax a kid you might as well give them rights to so stuff like vote and such... after all thier money that they earned is being spent tooo....

on Nov 29, 2008

You might be right--somewhat harsh--but I'm talking about those businesses that have them on the books. I'm not advocating going after the lemonade stand.

on Nov 30, 2008

stevendedalus
You might be right--somewhat harsh--but I'm talking about those businesses that have them on the books. I'm not advocating going after the lemonade stand.

 

Well I know but really being under the age of 18 shouldnt carry the burdon of taxes and paying for stuff that they have no say in. After all all of us over the age of 18 can vote and if we dont like what a certain elected offical is doing we have the right to voice our dislike of said actions.

 

Just so you know i am a HUGE advocate of kids working. Its instilling good values that I think that kids now a days have gotten away from and instead depend on mommy and daddy for stuff.

 

How about this... Give em credit if they actually spend the money wisely... if not then tax em?! I like this idea more

on Dec 01, 2008

How about this... Give em credit if they actually spend the money wisely... if not then tax em?! I like this idea more
Ditto and while we're at it give business credit when they hire here at home and keep their plants here.

on Dec 01, 2008

stevendedalus

How about this... Give em credit if they actually spend the money wisely... if not then tax em?! I like this idea moreDitto and while we're at it give business credit when they hire here at home and keep their plants here.

 

See steve... I am not sure if your one of the people that are for the tax hikes ( short term memory is shot for me lol ) but I have this thing about themm.... I hate em. Though I am opened minded and can agree with one thing...

 

Go ahead and tax... BUT.... if they create jobs here in the US and open/expand Bussness here on american soil... I think that instead those people who are helping this country grow economically should more or less get a big thank you and breaks on the taxes. This is what I am after... MORE JOBS and stronger economy. I feel if there are good perks in doing what I said it would encourage people to keep the jobs here and instead of building in Mexico... China... India or outsourcing too it would help this country .

 

Little off subject here on this thing im going to say but it kinda ties into this... I feel that there should be programs to intigrade homeless/jobless people back into productive citizens. These people for the most part need a guiding hand and have lost the way in life, while others really need this help to clean up ... some just fell on hard times and just need to be shown someone gives a shit to get back on thier feet.

 

All and all I think its not that I dont like taxes.... its just being taxes for the RIGHT reason. afterall our taxes pay for programs and other things for the gov ... only if its for the right reason...

on Dec 01, 2008

Kids working part-time already pay FICA taxes. They just don't owe any income tax (generally) due to their low income and dependent status. AFAIK the EIC is for poor parents, not for kids, anyway.

on Dec 01, 2008

AFAIK the EIC is for poor parents, not for kids, anyway.

Yes, and as a side benefit, it is one of the most efficient welfare programs.  Effectively utilizing an existing agency to dole out money without creaTing a whole new bureaucracy.

on Dec 02, 2008

These people for the most part need a guiding hand and have lost the way in life, while others really need this help to clean up ... some just fell on hard times and just need to be shown someone gives a shit to get back on thier feet.
Return to the New Deal's CCC and WPA--putting people back to work is the key.

on Dec 03, 2008

Return to the New Deal's CCC and WPA--putting people back to work is the key.

No, creating jobs is the key.  As much as people like to idolize it, there was still 25% unemployment.  Because jobs were not being created.

on Dec 04, 2008

Because jobs were not being created.
Only because FDR was wimpish in spending.

on Dec 04, 2008

stevendedalus

Because jobs were not being created.Only because FDR was wimpish in spending.

Thanks!  I needed the laugh this week!

on Dec 07, 2008

Thanks! I needed the laugh this week!
Why? What with wholesale bailouts the hilarity has been wild for you. What I still can't get my head around is how $billions are so blase when in FDR's time it was hundreds of thousands and seldom millions!

on Dec 08, 2008

Why?

Rarely Millions?  Mostly millions (Billion was still a pipe dream then).

And you have seen my Uber support for the bailouts......where?