Congress thinks it has the answer to saving us from the burden of taxes. The Senate Finance Committee is thinking about lowering the tax burden on the middle class. The Tax Foundation an independent expert warns that passing laws that benefit the middle class may not be the right way to go. The best course they feel is to do less to the individual tax level and cut the corporate tax rate.
Is this a ploy to help out big businesses? Here are some interesting facts:
The Americans with incomes in the bottom 20 percent pay only $171 in personal income taxes but pay $271 in higher prices arising from corporate income taxes. The top 20 percent income bracket pay an average of $48,390 more in taxes than they get in government services. Meanwhile the lowest 20 percent receive $31,032 more in government services than they pay in taxes.
Definitely something to ponder as the tax season rolls near. Let us know your thoughts. Do you favor corporate tax cuts or raising federal rates to levels from the year 2000?
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