Sunday, February 01, 2009

Details Behind That Stimulus Tax Cut

Our friends at Americans for Tax Reform have done some homework on the so-called tax cuts in the gargantuan stimulus bill.

Some highlights of the "refundable tax cuts":

even those with $0 income tax liability would receive a check from the government. Thanks to income eligibility phase-outs, many of the recipients of refundable tax credits are low- and moderate-income families with little or no income tax liability.

46 million of the 138 million tax returns filed (33 percent) have no income tax liability. Yet these 46 million households would still be able to receive refundable credits, despite having zero income tax liability

Under current tax rules, the refundable Earned Income Credit and Additional Child Tax Credit already remove both income and payroll tax liability for 15 million filers (or 11 percent of families). These people neither have an income tax liability nor a payroll tax liability, yet would be getting a “tax cut”

Read more here.

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