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11 October 2014

Economic Inequity of US Social Engineering

2013 Divorced Family Example

  • Two children
  • Each parent earning $15.00 an hour (full-time)
  • Male paying 40% of income in child support

Here are the numbers using IRS 1040 Tax Filing and Federal Poverty Level guidelines:

Line Entries
(1040 Line Numbers)
Male
paying 40% Child support
Female receiving that child support
Gross Income (Line 38)
31,200
31,200
Standard Deduction (40)
-6,100
-6,100
(Line 41)
25,100
25,100
Exemptions (42)
-3,900
-15,600
Net Taxable Income (43)
21,200
9,500
Tax: (44)
2,738
983
Child Tax Credit (51)
-0
-2,000
Tax Paid
2,738
0
Net Income (Gross minus Tax)
28,462
31,200
Child Support
-12,480
12,480
Actual Income:
15,982
43,680
Federal Poverty Level

(is based on Net Taxable Income AND number in household, not Actual Income)
11,670
19,790
Below Poverty Level
No
Yes
Qualifies for Subsidies
No
Yes


The inequity, of course, is that the tax code (nor qualification for subsidies formula) factor child support -- paid or received-- at any point.

For a male, child support PAID is considered by both tax code and qualification formulas for assistance as INCOME.

For a female, child Support RECEIVED is not calculated, at all.

Rather, having primary custody—even if only one day more than the male-- exempts her income from any tax, while qualifying her for assistance.


Why is this so?