It's a lie. Let me show you in a simple example of Joe Sixwhacked's 2011 1040EZ.
$10,000 - how much Joe Sixwhacked earned last year (his AGI since he doesn't earn interest or anything else).
- $9500 - standard deduction for a single person.
= $500 - Taxable Income.
- $270 - Earned Income Credit deduct.
= $230
= $24 - Tax, based on IRS tax tables.
So you're thinking...sure, but that's just 0.2% tax on AGI, and 4.8% on Taxable Income. But don't you think it's rather dumb to tax people living below the poverty level to begin with? All that money comes back in the way of Medicaid and other aid programs...why create the paperwork hassle and the cost of the paper trail, for a bunch of people who can barely put food on the table?
And anyway, it goes to show that conservatives are using speculation when they say that all poor people pay no taxes.
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