In response to:

Taxing the Poor

James365 Wrote: Dec 12, 2012 11:01 PM
Excellent commentary and comments. One point I would like to make is inflation hurts the elderly who are on a fixed income. Inflation is double scary when you no longer have the ability to work.

With all the talk about taxing the rich, we hear very little talk about taxing the poor. Yet the marginal tax rate on someone living in poverty can sometimes be higher than the marginal tax rate on millionaires.

While it is true that nearly half the households in the country pay no income tax at all, the apparently simple word "tax" has many complications that can be a challenge for even professional economists to untangle.

If you define a tax as only those things that the government chooses to call a tax, you get a radically different picture from...