Yeah, why would you want to tax government money you're giving away? Just give out less.
Okay, there are actually good reasons for it. That would be essentially how universal basic income works. Everyone gets paid the same amount in government benefits, but if they earn enough money, the benefit gets taxed to zero... or past zero. But if the goal is disaster relief and economic stimulus, then you actually want people to spend that money, not hold it in reserve to pay taxes later. I think Canada approached it wrong, even though this does help the poor relatively more.
Trump changed the way tax collection worked, so that the government taxed less money in advance. They touted the policy on how the government takes less of your money. And people were totally pissed, because their tax rebate at the end of the year was smaller. Like hey, we're counting on that money for important and/or fun things. It turns out people really like involuntary government savings accounts. Who knew?
Okay, there are actually good reasons for it. That would be essentially how universal basic income works. Everyone gets paid the same amount in government benefits, but if they earn enough money, the benefit gets taxed to zero... or past zero. But if the goal is disaster relief and economic stimulus, then you actually want people to spend that money, not hold it in reserve to pay taxes later. I think Canada approached it wrong, even though this does help the poor relatively more.
Trump changed the way tax collection worked, so that the government taxed less money in advance. They touted the policy on how the government takes less of your money. And people were totally pissed, because their tax rebate at the end of the year was smaller. Like hey, we're counting on that money for important and/or fun things. It turns out people really like involuntary government savings accounts. Who knew?
"Kitto daijoubu da yo." - Sakura Kinomoto