Tuesday, April 07, 2009

A lesson in fairness

I just did tax returns for two different people, with roughly the same income ($90,000).

Taxpayer A's tax liability, $16,679

Taxpayer B's tax liability, zero

The difference is basically lifestyle choices (kids, mortgages, etc).

Question. Should lifestyle choice result in a discrepancy this large? Is it fair? Why should one taxpayer subsidize the lifestyle of the other?

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