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JohnT
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Capitalist
Mar 1999
time: 00:28
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Well, don't worry about it. I did it already.
Edit: I did it wrong. Check post below.
Assumptions:
1. You worked full time @ $7.00/hr, no tips. 2000 hours X $7.00 = $14,000
2. You're married (remember, we are talking about "families" here, not singles - note that the Demo is not introducing a bill to allow singles to get a tax credit/refund).
3. Your wife didn't work (Because I'm basing this on your Pizza the Hut income only).
Income: $14,000.00
Standard Deduction: $13,850.00
Taxable Income: $150.00
Total Tax: $16.00
Tax Withheld: appx. $1,400.00
Tax Refund: $1,384.00
Now, in the name of fairness explain to me how you deserve a $400 check for paying $16.00 in taxes.
FYI: If you are single, your TI would be $6,300 and your tax would be $649.
Last edited by JohnT on 02-06-2003 at 10:53
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JohnT
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Capitalist
Mar 1999
time: 00:28
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Sava, you keep on changing the subject. Does that mean I won the prior debate(s)?
I'm trying to find the actual wording of the amendment but am having no luck. DanS - can you help?
Democrats.org says the following:
"Senate Democrats passed an amendment that ensured that all families with children would benefit from the child tax cut increase."
Which, of course, means my example above is flawed as it assumes no kids. Duh. Since we have to assume kids, I'm throwing away the 1040EZ and dealing with the 1040. Btw, you have no wife and are left raising the kid on your own.
Let's try again.
AGI: $14,000
Standard deduction (Head of Household): $6,900
Exemptions: $6,000
Taxable Income: $1,100
Tax: $111.00
Income Tax rate (based on AGI): .7%
God, Sava, that is oppressive. 
Let's see... the top income under the Democrat amendment would've been $26,000... let's see how that works out:
AGI: $26,000
Deduction: $6,900
Exemptions: $6,000
Taxable Income: $13,100
Tax: $1,469.00
Comes to a Federal Tax rate of 5% of AGI. Again, not very oppressive in and of itself.
Understand that the above calculations are very simplified and denote the maximum tax that one would pay... i.e., no child tax credit (1040 line 50, for which your kid would've qualified), no Earned Income Credit (1040 line 64, for which you also qualify), etc. Had you taken the child tax credit, the tax in both samples would've been totally erased meaning that you would've paid no Federal Income Tax under the present tax code.
But wait, there's more...
At the $26,000 example (and below) you also are eligible for the Earned Income Tax Credit - in this case, $476.00, which will be added to the refund of all tax monies paid via withholding.
Please note, Kidicious, that the EIC is not dependant upon whether or not you have kids. Also note that even if line 61 (your total tax) = $0, you get this money.
I did not bother to figure out the EIC for the $14k/year earner... if you are interested in filling out the forms as I have done, please announce the results in this thread.
Unfortunately, in the $26,000 example, you are not eligible for the Additional Child Tax Credit (Form 8812) as the regular Child Tax Credit effective erased all taxes owed. However, in the $14,000 example you could've taken an additional $365 in tax credits....which would've been refunded to you, though line 50 would've erased your tax liability.
So the Democrats sponsored an amendment for people who not only don't pay Federal Income Tax, but already receive a tax refund/credit for taxes that they don't pay.
Sorry, but feelings of guilt and/or outrage are not exactly taking control of me.
Last edited by JohnT on 02-06-2003 at 10:55
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02-06-2003 02:04
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