What is the difference in a tax cut and tax break?
What's the difference in a tax cut and tax break?
- troLv 79 years agoFavorite Answer
a tax cut would be a new tax rate that would be less than the current one
a tax break would be anything that would entitle the person to some kind of relief of the tax burden, I consider the child tax credit, earned income credit, the additional child credit, and make work pay credit, all tax breaks for low income tax payers
- RUSeriousLv 79 years ago
Let's say, for the sake of argument, the tax rate is 40% and is reduced to 35%. That is a tax cut.
On the other hand, if you were not allowed to deduct mortgage interest in a prior year, but you can do so this year, that is a tax break.
- BobbieLv 79 years ago
Nothing really just the way that the words are used some time by different people or taxpayers that are involved in the conversation at that time in their life.
For a possible reduction in the current tax rate amounts or possible income tax liability that apply to your filing status and situation when you are filling out your 1040 federal income tax return.
Hope that you find the above enclosed information useful. 07/11/2011
- Anonymous9 years ago
nothing. Its all just buzzwords used by politicians to try to win votes from people who never think beyond the 30 second soundbites.
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- 9 years ago