Unit 2

Americans' 90% tax rate

Link: http://www.cnn.com/2013/02/08/opinion/mccaffery-marginal-tax-rates/index.html?iref=allsearch

Many of those who are living in poor economic conditions face losing benefits since marginal tax rates are increasing to at least 90%. Many were asked about their tax income in an opinion survey. Those who stood out in the survey were those with a low income.

In this article the poor are being targeted when it comes to facing marginal tax rates.  Most of them are losing as much as 90% in benefits when they try to improve their lives. Therefore some benefits that are being received will no longer work out. For example those who work more than 20 hours a week or more and decide to get another job because they may think it is helping them but actually hurting them.   During the poll some are flabbergasted when those make more than $300,000 a year only face an income tax rate of 39% or less.  For those who say that we should raise taxes on the rich, this would be one point in their argument that I would concur with.  However the reason for why they increase the tax rate for the poor is because of the government aid that many receive, mostly welfare. On the other hand not many receive or ask for government aid because they are working more. Some are trying to bring in more money for their children that they are supporting or sharing cost in a marriage. For many marginal taxes are debatable. As they have stated in the article, it I said that high marginal taxes are a “poverty trap” that keep the poor in a loophole of being poor and not being able to reach the middle class.  On the other hand it may seem impossible for those in low income classes to marry because of their economic status.  Many of those people are being thrown under the bus by political parties because they do not have a steady marriage but they fail to see that they cannot simple afford to be married by their economic status.