Exempt From Paying Taxes – 130 Million Americans Could Be

(KMDL-FM) There is a very old adage that suggests that the only two things that are certain in life are "Death and Taxes". You've probably heard that one before. However, if proposed legislation passes in Congress and gets the approval of the President, then about 130 million Americans can scratch taxes off their "to-do" list and concentrate on dying. Well, you know what I mean.

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The proposal has been given a very "Washington Trendy" kind of name. The legislation's sponsors call it The Working Americans Tax Cut Act. In a nutshell, this plan would eliminate federal income tax responsibilities for an American worker who earns below the median cost of living.

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Who in Louisiana Would Qualify to Not Pay Federal Tax Under the Plan?

For purposes of the legislation, that figure has been established to be $46,000 annually. If you look at the median salary earned by Louisiana workers, that would be a lot of our state's residents who would no longer need to care about April 15th and Uncle Sam. You'd still need to be concerned with your State Taxes, but under this legislation, the IRS would no longer be your concern.

The proposed legislation also has provisions for wage earners who earn between $46,000 and $80,500; the numbers will vary for heads of household and taxpayers who are married. But in very round numbers, an individual who earns $50,000 annual might realize a tax savings of about $2,800. Using the same math and applying the legislation's formula to a family of four where the income is $95,000 annually, that would be a tax savings of $6,000.

How Will This Tax Program Be Paid For?

The bill would be funded via a surtax of 5% to 12% imposed on individuals with an income of over $1 million or married couples who earn more than $1.5 million. The legislation stipulates that the surtax would be applied to wages, salaries, capital gains, and other investment incomes. So it does seek to close a lot of "rich folks loopholes".

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One of the bullet points on the legislation's fact sheet suggests that the surtax would only affect 615,000 tax filers across the country but would raise more than $1.46 trillion in taxes.

Now for my cynical observation on this legislation and its potential for passing. I wonder how many members of Congress are included in that 615,000 that would pay a surtax? Somehow, I don't see them voting for legislation that takes money out of their pockets and the pockets of their wealthy donors. I might be surprised, but then again, I could stand up and watch monkeys fly out of my ...you get the idea.