(1) Under the federal tax code, a couple with two children earning
less than $26,400 will pay no federal income tax because the standard
deduction and exemptions reduce their taxable income to zero. The Tax
Policy Center has explained that this reflects components of “the
basic progressive income tax structure that intend to exempt subsistence
levels of income from tax and to adjust for differences in ability to
pay based on family size."
Do you disagree with that approach? Do you believe that this
family’s tax burden is too low? If so, how would you raise it?
Eliminate the deduction for children? Raise marginal rates? Make the
tax code less progressive? [Read more]
