(CNN) - House Speaker John Boehner will propose letting tax rates go up on income over $1 million as a short-term step to avoid some of the fiscal cliff while continuing to negotiate a broader deal with President Barack Obama, a Republican source said Tuesday.
Another article regarding taxes and the 'fiscal cliff' concerns tax credits for low income 'families'.
These Bush era tax breaks are the major reason nearly 50% of working Americans pay no Federal income tax. Having worked preparing taxes, briefly, I know a lot (20 to 40%) are cheating. The earned income tax credit, for one, applies not just for your own children, but for any you think you can claim, as niece or nephew, etc.. The rules are too loose, and too loosely enforced. Also, it is based on legally reported income, while many of the low income earners work off the books, to some degree or another.
Further, this taking from working middle income earners (refundable credit means the government sends you a check) creates a bad feeling, when we personally know some of the cheaters or those who bend the rules. I know of one person who passed up on a low management raise because the government paid thousands for staying in that certain bracket.