Tuesday, March 18, 2014

Tax codes favor the rich?! Are you kidding me? Guest blogger, Kay the CPA

I see tax returns where people earn next to nothing, their choice, yet due to the great tax credits for the "lower" income earners, they walk away with over $6,000 of a "refund.” A refund?!  There was no tax payment to start with!! How wrong is that, I ask.

Those with over $125,000 (depending upon status, tax issue, etc.) have to endure those tax benefit limitations on their Schedule A, alternative tax calculation, limits on deductible IRAs, limits on student loan interest deductions, etc. ... And it doesn't take much for a married couple to get those "dings" of the upper income level to kick in. A nurse and a labor worker can bring in what I would call a decent wage, yet the tax code will not provide those couples with many benefits, other than the child credit, and again, that is limited.

The tax code does everything it can to boost up the lower income earner and brings down the "upper" income earner. That is the tax code.

And try to do some estate planning. The laws for cash poor farmers, who are land wealthy, are detrimental for any planning. How fair is that?

I wouldn't cut off the hand that feeds me (speaking to liberals). The upper income earners are those people who are paying the way for Medicaid and other handout programs. The big corporations are vital to our IRA retirement funds, and that’s YOUR retirement fund.

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