CSPAN3 Politics And Public Policy Today September 29, 2016
Wonderful example so assuming some social and economic provisions ought to be in the tax laws, lets think about tax credits. Every dollar of tax credit saves you one dollar. It doesnt matter what your marginal tax bracket is. So if you owe a thousand dollars and you get a thousand dollar tax credit, you dont owe anything. If you owe a million dollars, you owe a million minus 1,000. Now, the tax credits also should be refundable in many cases where they are social programs because a refundable tax credit like the earned income tax credit which says people who are working but dont earn a living ...