Should all wage earners pay income tax?

Not that lady. Peace

The UK (and I think the general European) model would be: tax all incomes of $30k a year at exactly the same rate, and pay back benefits if necessary. So the childless couple on $30k each receive nothing back, whereas the single mother of three will receive benefit payments (which wouldn't be substantial in the UK, but would probably exceed the income tax paid) to ensure she has a home and the kids are fed.

Income tax in the UK starts from around $12k at a rate of 20%. Obviously there are a *lot* of low earning tax payers who receive various credits/benefits, but there's absolutely no stigma attached to it.

Simply excluding the poor(ish) from income tax creates an us and them situation and is therefore socially divisive.

Whatever the tax amount is, why not pay the person the 'before tax' wages and then print the taxable amount in new money that goes straight into the coffers for the government to spend.

...If it's all continually adjusted the same for the price of things and inflation etc. - why doesn't that work?

I think they should do it because pretty soon the individual will earn something more like the after taxes amount and the government will be rolling in some kind of double whammy money.

And I mean every government, everywhere - they should really just be a computer program by now, cheap as chips.

More than 1,000 millionaires in 2011 paid $0 in Federal Income Tax.

you might want to brush up on tax law..a single mother earning $30k a year with 3 kids would pay an effective tax rate of $0!

Your single mother is paying imbedded taxes whether she pays taxes directly or not. The tax code has to be looked at as a whole. With the current code, I would say no, she shouldn't be paying. There are other tax structures where it would make sense for such a woman to pay.

I know I'm going to get hate for this answer, but yes. We all need higher taxes to get back to the good times along with other drastic changes to how the government spends. Only taxing the richest would only pay at most 5% percent of the defciet. So looking at that it becomes logical everyone has to pay their share and drastic measures need to be taken to get us back in the black.

To clarify I'm independent. So don't bash either side for my answer. I happen to think both sides have bad ideas and good ideas.

Yes. She may not have to pay much, but everyone should participate in paying income tax because as Obama said, the roads that gave them those jobs were provided by the government. Therefore, if you take then you should also give.

She should be eligible for tax deductions and government subsidies. I think the 4,000 people making $1,000,000 a year and not paying any federal income tax on it should have to pay taxes.

Yes. Even if it is only a few dollars. BTW, the mother in your example is probably getting benefits that greatly increase that $30K. For example she can get an EITC "refund" of almost $3000, food stamps, housing aid, Medicaid, etc.

More than 1,000 millionaires in 2011 paid $0 in Federal Income Tax.

Something's wrong.