

Pawlenty's tax cuts - Bricejm
http://money.cnn.com/2011/06/17/news/economy/pawlenty_taxes/index.htm?iid=HP_River

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Bricejm
Discussion about tax rates usually revolve around ‘Tax breaks for the rich’,
or ‘Tax the rich!’. Opinions are usually developed depending on the
individual’s income, but what if common sense was used.

The U.S. has a marginal tax system. Although your employer uses a table to
smooth out the tax burden over the year, the first dollars you make are taxed
at the lowest rate, and as you earn more – and move up the income brackets,
your tax rate increases for each bracket, and so on. When you file your taxes
you’re paying an average of all the brackets that you earned income in.

That said if the government wants to cut taxes that truly affect the entire
population, they would start at the bottom, since everyone pays the lowest tax
at some point. There are always economic factors that push for one cut or
another, but if the government truly believes that a tax cut is necessary, it
should happen at the bottom.

