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      08-28-2008, 11:07 PM   #12
ganeil
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Quote:
Originally Posted by BKsBimmer View Post
You must be getting your mis-information from FOX News or some right wing blog, but you are absolutely mistaken. The tax credits Obama is proposing apply only to working class middle Americans to offset payroll taxes, which means they have payed the tax.

You and I both know that the overwhelming majority of people who pay $0 in federal income tax are wealthy people who are able to exploit tax loopholes.
I am getting my information from this document found at the the Obama website.
Provide a Tax Cut for Working Families: Barack Obama will restore fairness to the tax code and provide 150 million workers the tax relief they deserve. Obama will create a new “Making Work Pay” tax credit of up to $500 per person, or $1,000 per working family. This refundable income tax credit will provide direct relief to American families...

Create the American Opportunity Tax Credit: Barack Obama will make college affordable for all Americans by creating a new American Opportunity Tax Credit. This universal and fully refundable credit will ensure that....

Expand the Child and Dependent Care Tax Credit: The Child and Dependent Care Tax Credit provides too little relief to families that struggle to afford child care expenses... Barack Obama will reform the Child and Dependent Care Tax Credit by making it refundable...
Refundable tax credits are, a tax credit that can reduce your tax liability below zero(0). Because it is possible to receive a refund based on these types of credits, the credits are referred to as refundable.

That means you get the credit whether you paid any taxes at all. They are a redistribution of wealth.

As for your claim that the wealthiest don't pay income tax, the IRS disagrees. See http://www.irs.gov/pub/irs-soi/06in01etr.xls

In fact the top 1% of income earners pay almost 40% of federal income tax receipts, the bottom 50% around 3%.

Edit: Sorry, I see the chart did not make it in previously.

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Last edited by ganeil; 08-29-2008 at 08:20 AM.
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