In case you missed Governor Perry’s speech as he announced he was running for President, he made several references to lowering taxes while at the same time declaring, “We’re dismayed at the injustice that nearly half of all Americans don’t even pay any income tax.”
The reason that many households don’t pay any federal income tax is because their incomes are so low that they are simply exempt. If you don’t want to pay any income tax either, here’s how you can do it: Be part of a couple that earns less than $26,400 and has two children. But you’ll still be paying Social Security and Medicare tax of 7.65% of your wages, plus all the other taxes–gas tax, property tax, sales tax (in most states) etc.–that Americans are subject to.
Does that sound like a good financial trade compared to your life today?
Ruth Marcus does a good job here in the Washington Post of breaking it all down.
So Perry thinks it’s an “injustice” that some of the lowest-earning Americans don’t have a federal income tax burden. And if as president he raised taxes on the poor, who would that benefit?
Rick Perry, taking us from the War on Poverty to the War on The Poor.