HOLY SHIT! Rate at which AMT kicks in is down to $66,000 for a family of four!

[Atman]

Because of inflation. (But Bush keeps saying there is none!?) Jesus H. Christ! And the 1% get to pay NOTHING because of tax cuts and loopholes.

It's going to be a very bad 2008, I fear, for a lot of people.

.

[bluestateguy]

1. And yet you could qualify for CHIP at that salary

A family of 4 of that salary could not afford to independently by health insurance.

[hfojvt]

5. depends on the state, here are the lines

1 - 10,210 - 20,420 - 25,525 - 40,840
2 - 13,690 - 27,380 - 34,225 - 54,760
3 - 17,170 - 34,340 - 42,925 - 68,680
4 - 20,650 - 41,300 - 51,625 - 82,600
5 - 24,130 - 48,260 - 60,325 - 96,250


That's the poverty line, 200% of the poverty line, 250% of the poverty line and 400% of the poverty line. I think that current rules still only qualify those under 250% which is $51,625 for a family of four. Spitzer of New York wants to expand it to 400% as do other states like Jersey, Connecticut and California.

To say that the AMT "kicks in" at $66,000 is deceptive. How much does it actually add to that family's taxes at that income? That probably depends on whether they itemize their deductions and how much they itemize. Unless they have huge itemized deductions, it probably adds very little and adds progressively more as income goes up.

[Warpy]

2. The tax code is totally screwy

After being poor all my life, I inherited.

The last year I worked, I paid about $2300 in Fed. tax plus my 6.5% in OASDI, half of which was stolen to pad the budget and make Stupid's reckless tax cuts to fat cats seem less disastrous.

I didn't work in 2006, thanks to a bad back and eyesight so bad it's requiring transplants. I lived on dividends and interest from the inheritance, about double the income I had the last year I worked. My tax bite was $800. My medical expenses were high, but they'd been proportionately as high the last year I worked since I'm uninsurable.

That's insane, paying more than three times the tax when I was working for half the income than I did when I sat on my arse and waited for the money to roll in.

I'm putting this out there as a real life example of just what is wrong with this country today, and why conservative economic policy from both parties is killing both us and our country.

My taxes need to go up. Your taxes need to go down.

If they don't start focusing on demand side economics in this country, we are finished. That is the bottom line everybody needs to look at.

[kineneb]

7. sometimes working just doesn't "work"

Got another example, from my approaching future... Hubby is very ill, and probably will not live long - :cry: .

Once I have to get by on my own, I will not be able to earn more than $600/month. Reason: Any income over that sum is considered Share of Cost and has to be spent down so I can have public charity health care; I cannot afford private insurance, with my conditions. If I purchased my medications outright, they would cost around $300. So there is no incentive for me to earn more than $600 (at least officially) each month.

I am applying for SSI disability, which will also be about $600/month, but it would at least include Medicaid, which has better coverage.

[wain]

3. Dennis is right - DC is out of touch with us

and Rangel wants to reduce the corporate tax

[Blackhatjack]

4. Where did you get the $66000 figure? Can you provide a link?? thanks

[Atman]

6. It was a news story on MSNBC. I don't know it it's on their site.

Sorry, no linky yet.

As for the actual tax, this story said that that family of four would have a minimum $3,000 tax bill, if I remember correctly. Again, it was on the teevee and I haven't seen the figures in writing to verify what I heard.

.

[bigscott]

8. I think you are wrong

I made $250,000 last year - and AMT kicked in - I paid an extra $90.00 because one of my deductions was not counted

I still paid $45,000 in FEDERAL income taxes + state income taxes + real estate takes + personal property taxes (car)

All to fund *'s war