> Its much better than giving tax breaks since you need income to begin with.
1. There is a difference between refundable and non-refundable tax credits. A big misconception is that tax breaks only help those who already have income exceeding the size of the credit, which is not necessarily true.
Second,
> Its like applying plaster to an uneven wall. The dents gets filled with plaster but the bumps stays at the same level!
In this analogy, where is the plaster coming from? It can't just come from nowhere[0].
[0] ("Just print more" isn't the answer, because that increasing the money supply doesn't actually "create" money (in the colloquial sense) - it's just a redistribution method that redistributes by changing the relative value of outstanding debt.)
>>In this analogy, where is the plaster coming from? It can't just come from nowhere[0].
Moore's Law, AI , other technological advances. Some bumps are producing way too much paster thats oozing out of the wall boundaries and into the emerging market wall of other countries.
Imagine a time in future when everyone is replaced by robots and no one is "employable" in a traditional sense. What would you do then? The economy is directly linked to the productivity of nations in producing goods and services , it has nothing to do with human effort directly.
> A big misconception is that tax breaks only help those who already have income exceeding the size of the credit, which is not necessarily true.
Its actually always misleading, its just which way it is misleading varies.
For non-refundable credits, a credit only helps if your tax liability (not income) is greater than zero, and only provide full value if the tax liability is at least as big as the credit.
For a refundable credit, it gives full value all the time (well, independent of tax liability -- the eligibility criteria for the credit itself matter.)
> Its much better than giving tax breaks since you need income to begin with.
1. There is a difference between refundable and non-refundable tax credits. A big misconception is that tax breaks only help those who already have income exceeding the size of the credit, which is not necessarily true.
Second,
> Its like applying plaster to an uneven wall. The dents gets filled with plaster but the bumps stays at the same level!
In this analogy, where is the plaster coming from? It can't just come from nowhere[0].
[0] ("Just print more" isn't the answer, because that increasing the money supply doesn't actually "create" money (in the colloquial sense) - it's just a redistribution method that redistributes by changing the relative value of outstanding debt.)