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TFC Commodity Trading Forum

Re: Top 20% pay 95% of taxes

I'm often confused with the nomenclature used, viz-a-viz income tax.

Today, people that pay NO federal income tax, receive a "refund". How can you be given a "refund" if you haven't paid? In the real world, a refund is receiving something back, normally for which you were overcharged

"Rebate", in the normal world, is some incentive ... discount as it were, for purchasing an item ... basically the end result is a lower COST, after receiving that rebate.

So, with low earned income "tax credits", child tax credits ... This credit is for people who have a qualifying child. It can be claimed in addition to the Credit for Child and Dependent Care expenses

Those are outright payments, from the Treasury .... NOT refunds or rebates .... Just another form of welfare payments.

Too large a percentage of the population are on the dole.

Before Ronnie the Commie Reagan, there was NO earned income "credit" welfare payments. Moreover, there was a DEDUCTION for dependent children ... NOT a welfare payment.

Too few people have skin in the game ... and FAR too many are on the dole.

My tax dollars at work. Gotta love the US of A.