I think that would be quite easy to do - you simply get an income credit of, say, 60k this year. You make $59,999.99? You get all taxes paid back. Any income at 60k and above starts as if it was starting at $0.
There would still be some minor calculations for those who have to file state, but Federal would be easy for the majority of people.
For clarity, using existing tax terms, you're describing a deduction.
Tax deductions reduce your taxable income. Tax credits reduce the amount of tax owed.
Yes, but if you have no income, you would get all taxes paid back.
I understand that it’s an income credit, but it has the effect of “if you have no income to start with, you get no money back.”
This is a good idea.
And if you paid nothing in to start with, I.e. no income, you get no money back since you didn’t contribute.
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