Senator Rick Scott (R-FL), who last February proposed taxing millions of low-income households that currently pay no income tax, has issued a new version Which largely backs up those tax increases. But while its details are even more vague than its origins, Scott is still looking to increase taxes on many of those same homes. He just won’t say that.
Scots Rescue America 2.0, which addresses 11 areas of government policy, now has this to say about taxes: “Able Americans under 60 who do not have young children or disabled dependents must work. We should that they pull the car and pay taxes, not the money from the government sitting at home. Currently, the things many Americans can do are living off the hard work of others, and they don’t have the ‘skin in the game’. Government should never again encourage people not to work by paying them more to stay at home.”
It’s not possible to know what they mean by “encouraging people not to work”. He may be talking about a refundable tax credit, direct cash assistance, or both. But most federal aid programs for low-income people already come with work requirements.
“Hard Hat and Steel Toe Boots”
elsewhere in the planhe says, “This scheme cuts taxes. Nothing in this plan has ever, or ever, advocated or proposed any tax increase.” And he promises to make the 2017 Tax Cuts and Jobs Act (TCJA) permanent and require a congressional majority to raise any future taxes.
To add to the confusion, Scott showed up wall street journal (paywall) A video he had to do with the plan. While that video is not yet available on their website, magazine Quoted this: “What I was trying to say is that every American needs to put on his weight, every able-bodied American should do what he can so that we are all in this together. As we As everyone knows, men and women wearing hard hats and steel-toed shoes already pay more than their fair share.”
Before we look at the taxation of those hard-hats, here’s the backstory: Scott initially proposed that everyone in America should pay some federal income tax. since About 40 percent of American households currently do not have a federal income tax.—Mostly because they don’t make enough money—Scott would have effectively raised taxes on about 75 million households. Of course, almost all of them already pay some other tax, like payroll or sales.
Since Scott never had a specific plan, Tax Policy Center Analyzed A proposal that might be in line with what he was talking about last winter. The TPC concluded it would increase taxes by about $100 billion, and that 80 percent of the burden would fall on low- and middle-income households. Average tax increase for households earning about $27,000 or less: About $900.
Democrats were happy. Fellow Republicans weren’t happy that the chairman of his Senate campaign committee was proposing a one-of-a-kind brand tax increase for 75 million homes.
Scott asked to back down. In a succession of interviews and tweets, he insisted that he never proposed a tax increase, although taxing someone who currently pays no income tax certainly sounds like a tax increase. Then, he said his idea would exempt retirees and others. He said that only those people who can work but will not pay their taxes. He never explained how the IRS would make such a determination.
But Scott never changed his plan. So far.
Raising taxes… or not?
What would 2.0 mean for “men and women wearing hard hats and steel-toed shoes”?
We don’t know exactly what Scott is talking about. but According to the Bureau of Labor Statistics, The median salary for “construction workers and helpers” last year was about $37,500.
To keep it simple, imagine an unmarried construction worker who takes the standard deduction of $12,950 this year, making taxable income about $24,500. This puts this worker as a whole in the 12 percent tax bracket. Her federal income tax would be about $2,800 and her effective tax rate would be about 7.5 percent.
It assumes that he has no children. If she is unmarried with one child, her standard deduction is $19,400, her taxable income is approximately $18,000, and her federal income tax would be approximately $1,900. but before Child Tax Credit (CTC.)) add to that, and she’ll become one of those non-payers that Scott is very concerned about. Even though she wears a hard hat and steel toe boots.
Thus, he does not have to pay federal income tax today. Under Scott’s initial version there would probably be taxes owed on him. But will he have to pay some income tax today?
It looks like she won’t, especially since Scott says she will make the TCJA permanent, which includes a $2,000 child credit. But where does that leave “pulling the wagon and paying the taxes”?
Then comes the question of what “fair portion” means. Opinion polls consistently show that most Taxpayers usually assume they pay their fair share in taxes. However, he also believes that the wealthy and corporations are taxed.
There’s a major rule of politics: When you’re in a hole, the first thing you do is stop digging. Someone needs to take Senator Scott’s shovel away from him.