Sean’s Rant

A Blog about tech, economics, web tools, mobile, business ideas, wordpress, etc.

The descriptive / prescriptive tax code - the 1040

with one comment

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.

Related posts:

  1. About debt relief: an idea
  2. The Credit Crisis: A mask for the effect on the US economy from the trade deficit
  3. The depth and breadth of the credit crunch from a recovery viewpoint
  4. The real Dow Jones Industrial Average reaction to the collective action of the central banks: An analysis

Written by Sean

February 2nd, 2008 at 12:17 pm

One Response to 'The descriptive / prescriptive tax code - the 1040'

Subscribe to comments with RSS or TrackBack to 'The descriptive / prescriptive tax code - the 1040'.

  1. Interesting to know.

    Beverly

    28 Oct 08 at

Leave a Reply