Obama and his new budget: Debt will surpass total US Economy

[firstdown]

Originally Posted by saden1

It worked for my boy's dad. Had him five kids paid absolutely zero taxes for 40 years. I mean, we got to get away from encouraging credit for kids. I got zero kids and my effective tax rate 25%. What's your effective tax rate?

On behalf of all single people I accept the gratitude of all catholics with baby mama's and 3 kids :p

For him to pay zero in tax then he must have been low income and actually received a tax credit because he was low income. There is a limit that a family can claim no matter how many kids they have. I think its capped at $6000 so if they are in a 25% tax bracket then they can reduce their tax liability by $1500. Its not really that big of a tax break.

Now if your boy is consider low income they get a tax credit even if they did not pay taxes. So if your boy did not have to pay any taxes then claimed his child then he could actually get a refund and not paid a penny into the system. Thats the screwed up part if you ask me. You pay zero federal tax over the year but you get a child tax credit and get back like $1200 for up to 2 or 3 children. Not sure how many you can claim because back in the 90's it was capped but that cap could have been removed.