Do low-income people receive preferential tax treatment? Explain. (include: earned income credit, head of household, child care credit, child credit, refundable credits vs. tax reductions, etc...) Does this help low-income families/society?
Do higher-income U.S. citizens receive preferential tax treatment? Explain. (include: earned income credit, head of household, child care credit, child credit, refundable credits vs. tax reductions, etc...) Does this help low-income families/society?
The notion that low-income citizens in the United States receive preferential tax treatment is preposterous. I will provide an overview of how the U.S. tax system operates and then provide an argument for why higher income citizens receive preferential treatment as opposed to low-income U.S. citizens. In reference to taxes that are collected by the federal government, lower-income citizens who comprise the majority of taxpayers were responsible for paying 47% of all taxes collected by the federal government in 2014. The amount that will be paid by the citizen is determined by calculating several factors, which include the gross income that is derived from the source of income that the taxpayer receives their annual pay from. There are some exceptions wherein any interest that accrues as a result of tax-free municipal bonds, payments for life insurance benefits after the death of a person covered by these benefits, and health insurance benefits that are a result of contributions to the taxpayer's pension are all exceptions to the source of income that is taxable by the federal government.
After gross income has been determined by the aforementioned process, this can be reduced by deductions that are allowed to be deducted, which creates the adjusted gross income that the taxpayer will be taxed ...
Do low-income people receive preferential tax treatment is determined.