Should the dependent exemptions be removed from tax code?
Deductions for kids are just the tip of the iceberg. Better yet, let’s eliminate the Earned Income Credit and the Additional Child Tax Credit. Those are the credits that pays people to have kids if they agree to never marry. Example: Susie has two kids and makes $13K a year. She will pay no taxes since her standard deduction + personal exemption + 2 dependent exemptions wipes out all income. But not only that, the federal government (in other words, we taxpayers) will pay her an earned income credit of $4500. So her taxes for the year are -$4500. In other words she is a payer of negative taxes – she gets all her withholdings back plus a $4500 bonus. Oh yeah, I almost forgot about the Additional Child Tax Credit. Another bonus for anybody with kids who makes over $11K but isn’t eligible for the Child Tax Credit, like Susie. Without figuring it out exactly, let’s just point out it can be anywhere from a few dollars to a few thousand dollars. So she “pays” even more negative taxes. On the
