Political Factoid
Income tax deductions are "regressive."
An income tax deduction reduces
the taxes of a wealthy person
more than it reduces the taxes
of a lower-income person.
Example
Person in 35%
tax bracket |
Each $2,000 tax deduction
saves $700 dollars in taxes.
|
Person in 15%
tax bracket |
Each $2,000 tax deduction
saves only $300 dollars in taxes.
|
- Personal deduction/exemption
- Charitable deduction
- Medical deduction
- Mileage deduction
- Property tax deduction*
- etc.
* |
More likely a higher deduction to begin with
for a more-affluent person (i.e., with a bigger,
more expensive house).
|
|
|
-30-
|