So taxpayers at the bottom would already pay much less than 14.5%. But because Paul would repeal the payroll tax, keep the earned income tax credit and grant an income tax exemption Gleckman calls generous, bottom-rung taxpayers “would pay an average effective federal tax rate of close to zero, or perhaps even below zero,” Gleckman writes.Sounds good. That amounts to a raise for every American if they repeal the payroll tax. Most people will get like a $1000 or more a year extra that they can spend on something productive.
This part is hilarious though
Paul’s plan would come at a cost — The Tax Foundation projects it would increase the deficit by between $1 trillion and $3 trillion over a decade.This of course ignores the growth from people spending more on something that they need instead of giving their money to Washington so that Capitol Hill fat cats can waste it. I never understood the idea that people freak out when the Government gets less tax money. That means that people are keeping more of their pay and that should be a good thing. Especially if those people are lower income because they spend a larger percentage of their take-home pay.
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