The descriptive / prescriptive tax code - the 1040
The way the tax code is written is supposed to cater to a certain class of people, either the poor or the family, or those with children. It is nicer to the very poor or the middle class. If you are found somewhere in between there, you’re probably getting screwed. So in the tax code being descriptive it becomes prescriptive. In this way - if you live how the tax code wants you to, it is cheaper and your life becomes easier as far as paying taxes go. The tax code tells you: Either be poor and have kids, or make just enough money to stay under the limits of the following deductions and credits: Have as many kids as you possibly can and send them to daycare and even adopt while you’re at it. Own a home with a loan on it and have a lot of medical expenses. Go to school forever and take out as much in loans while you are there. Give away as much as you can to charity - but keep track. Have a massive catastrophe happen to you also. Contribute to a retirement plan. Make your house more energy efficient and drive a hybrid. But just make sure you don’t make too much money. Because all of this starts to fade away if you do.
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Interesting to know.
Beverly
28 Oct 08 at