Congress sets the rates. But unless we eliminate all forms of deductions, people pay a different effective tax rate. As I explained, if you make a charitable donation to, say, a church or veterans organization, you can deduct that from your taxes. If someone else does not, they don’t have those deductions. Therefore, the effective tax rate changes for the person who makes the donations. Should we eliminate all deductions of any kind? Are taxpayers subsidizing churches? Atheist organizations have argued this for years. They’re wrong. If we go to a flat or fair tax, then yes. Cut out all deductions. But that’s not what has happened. We still have a progressive income tax.
Moreover, if this guy is right, and he’s not, why have a different rate for corporations than individuals? Based on his logic, aren’t individual taxpayers who are paying rates now over 21% subsidizing corporations?
Finally, all the money belongs to the person who earns it. Tax deductions are not subsidies by those taxpayers who have no deductions. One has absolutely nothing to do with the other. To argue otherwise is to accept the Left’s ideology and regurgitate its propaganda. It’s astonishing how many so-called conservatives are now voices for radical egalitarianism and class warfare.
This red state-blue state stuff is intended to deceive individual taxpayers. The individual pays federal income taxes not the states. The individual pays more in taxes. Not one of the high tax blue states will alter their tax policies. This is intended as a revenue enhancer to the federal government — from the individual’s bank account directly to the federal treasury. It has zero to do with fairness or blue-red states.