Tax cut idea

In My Humble Opinion (IMHO)
#1

I did a quick search and didn’t find this idea anywhere.
If I missed it, I apologize.

Anyway, If the Republicans want to give everyone a ‘tax cut’, why don’t they just raise the ‘basic (or personal) exemption’ by $500.00 or $1,000.00 or whatever. I suppose married people would get their exemption raised by twice the specified amount, but no kicker for additional dependants.

That way, everybody who pays taxes gets the same ‘reduction’, and the bulk of the tax ‘cut’ would go to the people who could really use it.

I know, it sounds too simple, and that makes me suspicious too, but I think this would be a lot fairer than a percentage cut.

Comments anyone?

#2

Higher exemptions do not benefti everyone equally, rather they benefit those in the higher marginal tax brackets the most. Why? because the person in the higher marginal rate is saving more money. Their tax burden is reduced by the exemption times the tax rate, therefore the higher the marginal rate the higher the savings.

#3

Okay, so I had a senior moment there. I meant to say ‘standard deduction’. Sorry if I misled you Tretiak.

And to avoid any discussion of itemized deductions, let me reduce the arguement to this: why don’t we (they) just take a set amount off the top of everyone’s taxes instead of a ‘percentage’ cut, with couples filing jointly getting twice the cut.

Now, who’s fer it and who’s agin it.