Millions of American Make Money on Taxes? Can you?
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According to the Atlantic magazine 15 million amreican households receive more cash to the IRS than they contribute to federal income and employment taxes. How is this possible? Low-Income American households may benefit for targeted welfare programs.
Washington has passed laws such as child tax credit, earned income tax credits. Another free riders include: making work pay tax credit, increased in earned income tax credit, american opportunity credit, homeowner, temporary suspension on unemployment taxation, alternative minimum tax patch.
Interestingly enough, the free riders favor low income americans who don’t contribute to the tax system, as well as the “under-paying” rich whose incomes have falter during the 2000s. Actually, by patching the alternative minimum tax, the tax cuts went to families making between 100k to 500k. umm….