Do you think the U.S. Personal tax exemption should be raised? (it's capped at just over $3k now)

[netmouse]

[Poll #1835541]

Comments

[ceemage.livejournal.com]

Different systems, I know, so not strictly comparable. But the Personal Allowance in the UK for Income Tax is £8,105 ($13,050) for 2012-13, and will be increasing to £10,000 ($16,100) over the next few years.

[drplokta]

Sharp cutoffs are nearly always a bad idea. You don't want people earning $109,990 per year to have to beg their boss not to give them a $200 raise. Increase the threshold for everyone, and reclaim it from the rich with a slightly higher top rate.

[nicegeek.livejournal.com]

I would rather provide progressivity through an expanded Earned Income Credit, and have the rest of the tax code be flat.

[rmeidaking.livejournal.com]

I think households should be treated as corporations, and their documented expenses deducted from their documented income. This would put individuals and households on the same footing as corporations, and shift the burden to those households which manage to have something left over at the end of the year. Since the poorer households do tend to spend all of their income, this would inherently shift the tax burden to the wealthy.

Yes, it becomes a game of spending all that income, but that spending is what drives the economy. Increasing savings generates money for banks, and gives the government something to borrow, but causes the economy itself to stagnate.

I have even more radical ideas on how to fund a government.... :-)

[apostle-of-eris.livejournal.com]

So, what brings all this to mind?