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Cole12 December 20th, 2016 8:28pm

In the US, it's very possible for an MFJ couple with several children to make six figures and pay almost nothing in federal income tax (link in comments). Should the dependency exemption and child tax credit be phased out at lower levels of income?

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dfish at home
12/22/16 4:06 pm

I'm down for a simple tax with no loopholes

delaluna
12/21/16 9:14 am

The dependency exemption is only a small part of the reason their taxes are so low. Most of it has to do with the fact that they are putting over 40% of their income in tax deferred savings for retirement. They'll pay taxes on them when they pull the income out of savings.

TerryQuinn Stardust
12/20/16 8:53 pm

I support deductions at all levels, but the deductions should decrease with each additional child. I don't have any problems with large families. I just don't think it should be tax-payer funded after a certain point.

curly
12/20/16 7:44 pm

I misread the question the same way others below did, but yea I'd be fine with lowering the cutoff for the deduction.

Torfin Never Behind
12/20/16 4:40 pm

The entire IRS/Tax Code needs to be dumped and replaced with the Fair Tax. As originally published.

rons WOKE is sick
12/20/16 4:19 pm

Having a -3k carryover tells me they suck in the stock market.

political Georgia
12/20/16 2:55 pm

Yes - but probably not for the same reason as you

callen002 Cincinnati
12/20/16 1:59 pm

This is why we should just have flat tax. Everyone pays 15%. Simplify drastically to allow only mortgage and charitable deductions.

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accaggiano
12/20/16 1:31 pm

If you meant "phased out at higher income levels", but I can't see phasing it out at lower income levels.

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Cole12 ...
12/20/16 1:34 pm

No, I phrased this question correctly. For example, currently, personal exemptions phase out at around $300k for MFJ filers, and I'm asking if this $300k amount should be lowered.

accaggiano
12/20/16 1:45 pm

Ah. I read it as phasing out for the lower incomes but allowing it for higher incomes.

presrvd Phoenix
12/20/16 2:43 pm

I read it the same as accaggiano...