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Unformatted text preview: Sometimes a specified AGI amount represents the dividing line between receiving the full amount of a benefit or not receiving any benefit. b. Examples of benefits which are subject to limitation include: personal exemptions, itemized deductions, earned income tax credit, child care credit, child credit, and deductibility of IRA contributions. c. There may be a number of reasons why Congress might restrict benefits. First, reducing benefits results in higher taxable income and tax liability, thus increasing tax revenues. Second, taxpayers with higher AGI are often deemed to be able to financially afford fewer benefits and higher taxes since they have more money to start with. Third, and somewhat ironically, there are fewer high income voters compared to low and moderate income voters....
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This note was uploaded on 09/16/2011 for the course ACCT 145 taught by Professor Eric during the Spring '11 term at Palm Beach Community College.
- Spring '11