They are trying to tell us that the poor are okay. The class suffering injustice is the middle class. Everyone is flirting with the middle class. That, in itself, encapsulates the lot of the poor. They are being ignored as constituents. The presumption is that they don't vote and when they vote they will vote one way. The ones they vote for ignore them and the ones who don't expect to get their vote write them off and their needs along with them. This is just a starter.
Biasness in the Tax Code
Let us take up the tax code and biasness against those who are less fortunate. The itemized deducting benefits for example accrue only to the middle and upper class. A poor person may incur five thousand dollars of medical expenses that may not be recognized by the code because they don't go above the threshold of the standard deduction which they would get any way, medical or no medical as if the medical expenses never happened. The person who can itemize is one who can benefit from those medical because he or she has other deductions such as interest and taxes on their house. The code, in all fairness however, gives a hand to the poor through the child credit and the earned income credit to mitigate some of the biasness skewed, not necessarily against the poor, but toward the more fortunate.
Higher Payroll Taxes
Take payroll taxes. Those taxes are phased out above a hundred thousand dollars (about one hundred and ten thousand.) So the poor or the middle class will continue to pay the payroll taxes to the last dollar of their earrings. The more fortunate will have an income above that threshold which is exempt from payroll tax above that level. That equates to about fifteen per cent of less income tax for the benefit who live better.
Although the poor benefit from child credit and earned income credit, they are no match to the great benefits offered in the code for those with means. Take capital gains rate (which I totally support). This rate is usually shown on the tax returns of those who have some means. Take investment tax credit which gives the taxpayer a dollar for dollar credit. Both can only be utilized by movers and shakers, not the poor.
The Obscenity of Pay-Day Loan Interest
When we move away from the tax challenges inherent in the code, we encounter the pervasive biasness of the society, any society not necessarily ours alone, against the poor. Who would believe that there are some institutions who charge over five hundred per cent as interest rate (yes five hundred 500%) not fifteen per cent, it is not fifty but five hundred per cent! Who does that? Ask our glorified congress about pay day shops? These shops should either stop preying on the needy and to charge a fair interest rate or be closed (as in shut down.)
Bank Charges that Hurts
Another biasness in our daily lives is the insufficient charges banks take from the poor. There may be a few hundred dollars of charges that the poor may end up paying for a ten dollar bouncing check. He or she will pay their bank fees and others who receive his bouncing check. There should be some mercy somewhere in the corridors of the elegant banks. And then there’s the higher loan interest rates charged to the poor because they are the ones who usually end up with bad credit. Not to mention the interest and a rate of over thirty per cent on credit cards. Persons with means may pay two or three per cent. Same thing goes for buying a car. The poor buys a cheap car with a payment as high as that of a luxury car because they don't have good credit.
Dean Alexander is the founder and CEO of NFA Tax Help and has been helping clients with tax issues for over 35 years. Learn more by going to www.resolvemytaxes.com or email Mr. Alexander at email@example.com.