Tuesday, December 21, 2010

About those 51 million poor people who will be worse off under the new tax plan.

I am one of those people. And since I am all about sharing just how hard this poverty shit is with you all, I am now going to break down my tiny income and taxes for you all. It's a huge taboo in this country, to talk honestly about your own money. So you all might understand if I'm feeling a bit squeamish. It's a bit of social programming I am trying to break.

Last year my adjusted gross income was $5963

My tax refund (including the earned income tax credit plus the $400 Making work pay credit, minus 15.2% in employment taxes for blogging income) was $1823

This year (so far) my income is $4930. If the schedule for the earned income tax credit stays the same (they haven't published 2010 yet) then my refund is $1675 before I pay employment taxes. And because I am considered self-employed (like many of the disemployed who are selling whatever they've got in order to get by) I am responsible for all of those taxes.

So $1675-749 (15.2%of 4930) is $926. Or about half of 2009's refund.

Now before anyone gets all cranky pants about how much of a refund I get compared to how tiny my income is- I would LOVE to be in a tax bracket where I am no longer eligible for the earned income tax credit. That bracket is $35,000 a year for a single parent with one kid. If you know of a job like that- pass it on.

Of course if I were in the Million plus club, the average tax benefit under the new tax plan is about $139,000, or enough to pay for 4 $35,000 jobs. But that's not where it's going to go, is it?

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