In response to:

Taxing the Poor

TeaLeaves00 Wrote: Dec 12, 2012 3:48 PM
This is so true! We live in Oregon... and are just on the edge of the poverty level (we own a home and are not what we consider "poor"). But we are in a weird situation. If I get a job to supplement my husband's income, my loss due to government policy is over 50%. I lose 15% to SSI, 10% (will be 15) to Fed Tax, 9 % to Oregon state tax... plus we lose about 15 to 25%of our earned income credit. (We already pay $1750 property tax). Plus if I get a job, my income may disqualify our son's Pell Grants, as well as prehaps make us have to pay for obama health insurace (which we don't have). Not to mention gas to get to work. We feel so squeezed.... There is no way out of this mess.
Neal from PA Wrote: Dec 12, 2012 4:31 PM
Yes, there is...telling your government representatives at the Local, State, and Federal levels to CUT the spending. When taxes at any level rise, government only spends more.

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...