About That Middle Class Tax Break
You remember that item in the stimulus package that was going to help workers by giving them more money in their paychecks so they would continue spending? Well, it wasn’t very well designed.
CNN/Money reports on the Stimulus surprise: 15 million may owe IRS.
Congress still thinks we live in a “Father Knows Best” world of single income nuclear families living in the suburbs with two kids, a dog, and a DeSoto in the driveway. The simplistic way that the law was written is going to take a tax bite out of a lot of people because Congress apparently didn’t consider the possibility of people with multiple jobs.
This is just one of the manifest reasons to not use the tax system for anything other that raising revenue for the government. When you use the tax system for “social engineering”, there are always unintended consequences. The massive increase in home equity lines of credit is a direct result of screwing around with the tax code.
