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Present Taxing System
August 6th, 1999
by columnist
David Lawrence Dewey

"Reading provides knowledge...
knowledge leads to answers."
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The Present Tax System Results
in Single and Married Couples Without Children
Paying the Brunt of Taxes
Here Is the Truth and Facts!

In 1998, the standard deduction for a single was $4,250.00 with and exemption amounts of $2,700.00. This was increased $150.00 from 1997. A married couple with no children would have a standard deduction of $7,100.00 and $5,400.00 in exemption amounts. A married couple with two children would have a standard deduction of $7,100.00 and $10,800.00 in exemptions. The following tables of taxes paid if all took the standard deductions and the married couple with children also took the child care credit. It reflects and shows that singles and married couples without children are paying the brunt of taxes. Another words, singles and married couples without children are paying the taxes for married couples with children.

This shows incomes of minimum wage earners, earning $5.15 an hour

Single Person 1998 Taxes

Gross
Income
Less Deductions &
Exemptions
Taxable
Income
Present Federal
Income Tax
% of
Gross Inc
$10,506 $6,950 $3,556 $536 5.10%

Married Couple Without Children 1998 Taxes

Gross
Income
Less Deductions &
Exemptions
Taxable
Income
Present Federal
Income Tax
% of
Gross Inc
$21,012 $12,500 $8,512 $1,297 6.17%

Married Couple With (2) Children 1998 Taxes
Couple would not have paid any federal taxes
and received an additional refund of $683.00
due to a child care credit of $1152.00

Gross
Income
Less Deductions &
Exemptions
Taxable
Income
Present Federal
Income Tax
% of
Gross Inc
$21,012 $17,900 $3,512 *(-$683) .00%

WAIT - IT GETS WORSE!

Married Couple With (4) Children 1998 Taxes
Couple would not have paid any federal taxes
and received an additional refund of $1,152.00
due to a child care credit of $1152.00

Gross
Income
Less Deductions &
Exemptions
Taxable
Income
Present Federal
Income Tax
% of
Gross Inc
$21,012 $23,300 $00.00 *($-1,152) .00%

Now why should a single person making minimum wage wind up paying 5.10% of his gross income, and a married couple without children pay 6.17% of their gross income, when married couples with two or more children pay 00.00% of their gross income and not only get all of their federal income tax withheld from their paychecks but a refund as well due to a child care credit. If this fair? Who is really paying for whom and what here?

WAIT - IT GETS EVEN WORSE!

Let's increase the wages to $8.00 an hour for everyone
And both spouses are working.

Single Person 1998 Taxes

Gross
Income
Less Deductions &
Exemptions
Taxable
Income
Present Federal
Income Tax
% of
Gross Inc
$16,320 $6,950 $9,370 $1,406 8.62%

Married Couple Without Children 1998 Taxes

Gross
Income
Less Deductions &
Exemptions
Taxable
Income
Present Federal
Income Tax
% of
Gross Inc
$32,640 $12,500 $20,140 $3,011 9.22%

Married Couple With (2) Children 1998 Taxes
Couple would paid only $1,249 in federal taxes due to an
additional credit of $960 of a child care credit.

Gross
Income
Less Deductions &
Exemptions
Taxable
Income
Present Federal
Income Tax
% of
Gross Inc
$32,640 $17,900 $14,740 *$1,249 3.83%

WAIT - IT GETS WORSE!

Married Couple With (4) Children 1998 Taxes
Couple would paid only $446 in federal taxes due to an
additional credit of $960 of a child care credit.

Gross
Income
Less Deductions &
Exemptions
Taxable
Income
Present Federal
Income Tax
% of
Gross Inc
$32,640 $23,300 $9,340 *446.00 1.37%

Now why should a single person making $8.00 an hour wind up paying 8.62% of his gross income, and a married couple making $8.00 an hour without children pay 9.22% of their gross income when a married couple making $8.00 with two children pay 6.77% of their gross income and a married couple making $8.00 an hour with four children only pays 1.37% of their gross income. Is this fair? Who is really paying for whom and what here?

America Needs A Realty Check On Taxes

America needs a Flat Federal Income Tax and a Federal Sales Tax, doing away with filing yearly income tax forms. And most important, become aware of the real expenses of the U.S. Govt. and not what you are being told they are. If you have not read my column, Taxes - A Reality Check then make sure you do. Read it to understand why our present tax system must change not only to correct injustice in our present tax system, but to protect our children, our future generations.


~ David Lawrence Dewey ~


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