GOP wants to end the EITC

[soulflower]

We have heart now too. But we also have priorities. Old people need their medicare more than the underemployed need their free handouts. Sometimes you have to make hard choices or end up going bust.

People in the Labor Force today are paying for Medicare

[kandace]

People in the Labor Force today are paying for Medicare

Stop being so factual.

[Jeebus]

People in the Labor Force today are paying for Medicare

Without being able to use it.

[BeHereNow]

My understanding is that the EITC offsets payroll taxes which would otherwise create situations where the working class pays a greater overall tax rate than the wealthy.

Some EITC payments exceed the GROSS earnings of the household.

[OldBay]

We have heart now too. But we also have priorities. Old people need their medicare more than the underemployed need their free handouts. Sometimes you have to make hard choices or end up going bust.

At one time, Republicans thought the EITC would provide an incentive to work, - even at low paying jobs. Without the EITC, a perfectly rational decision would be to stay home and collect welfare. Or do you prefer to raise the minimum wage to compensate for the loss of the EITC?

Would it be such a "hard choice" to end some of the tax credits that go to businesses with effective lobbyists?

[gps29070]

The repubs want to scrap this EITC as well as the Child Tax credit and the College tuition tax credit.

I don't trust the republicans at all. If they proposed this along with a tax increase for the wealthy and REAL government cuts and REAL military cuts.. Then I would bargain with them.

[Terry K]

The poor need to pay more so the wealthy can keep their tax cuts:



http://tpmdc.talkingpointsmemo.com/2...-tax-hikes.php

Could it be the GOP is trying to eliminate the 4.2 billion dollars currently being paid to ineligible recipients i.e. illegals, some of whom are claiming and receiving Child Tax Credits for children living in foreign countries?

http://www.factcheck.org/2012/05/tax...al-immigrants/

"The title of the report summed up the IG’s finding: “Individuals Who Are Not Authorized to Work in the United States Were Paid $4.2 Billion in Refundable Credits.”

The credits currently amount to $1,000 per child, and they are “refundable,” meaning that parents may receive refunds even when they do not owe any tax.

The IG report stated that more than 2.3 million persons who did not have Social Security numbers valid for working in the U.S. got an average of roughly $1,800 each in 2010 in child tax credit refunds. That included 9,000 illegal immigrants who each got a total of $10,000 or more by retroactively claiming credits for tax years prior to 2010."

[Sprightly]

I know someone, very well I might add, who receives very large income tax refunds every year. In 2011 the person worked maybe three months total yet received almost $4,000 from the Feds and a little over $1,000 from the State. The person also received child support, medical assistance, food assistance, unemployment, energy assistance, etc.

I, on the other hand, claim no dependents and have additional money taken from my pay in order to (hopefully) not owe taxes again next year.

Now, I love this person but you can't know how much this "windfall" pisses me off year after year (some of my anger stems from the fact that the person doesn't work and really doesn't even try to find a job although is qualified for good paying jobs). This year I did ask, "How does one do this? How does one not even earn $4,000 in a year yet get that and more back in the form of tax refunds??"

<end rant>

[skeemer]

Makes sense but who cares about the poor anyway?

I certainly don't.

[overtaxed]

My understanding is that the EITC offsets payroll taxes which would otherwise create situations where the working class pays a greater overall tax rate than the wealthy.

I don't think that is how it works. They usually get back far more that was taken out of their checks. I have no problem with them getting back all they paid in. I have a huge problem with them getting back more than they paid in.

[gps29070]

Using the EITC calculator on this website

http://eitc.intuit.com/calctools/

Put in someone making $10,000 a year. If they don't pay a dime of income tax out of thier check, they would get a EITC refund of $6,015 between federal and Maryland EITC. I don't remember if they would also qualify for the child tax credit of $1,000 per child, but if so, their refund goes up to $8,015

[Halberstam]

The poor need to pay more so the wealthy can keep their tax cuts:



http://tpmdc.talkingpointsmemo.com/2...-tax-hikes.php

Your commet is economic illiteracy on steroids. Tax cuts for the wealthy have nothing to do with the EITC.

[zenwalk]

Have taxes gone up?

Thank you. Unless you smoke no taxes have gone up under Obama, unfortunately.

[zenwalk]

I don't think that is how it works. They usually get back far more that was taken out of their checks. I have no problem with them getting back all they paid in. I have a huge problem with them getting back more than they paid in.

Even if the trade policies of said government are the reason our fictional guy is unemployed?

[soulflower]

Your commet is economic illiteracy on steroids. Tax cuts for the wealthy have nothing to do with the EITC.

You should read the link I posted before calling others illiterate. Obviously you didn't read the article...

[OldBay]

Using the EITC calculator on this website

http://eitc.intuit.com/calctools/

Put in someone making $10,000 a year. If they don't pay a dime of income tax out of thier check, they would get a EITC refund of $6,015 between federal and Maryland EITC. I don't remember if they would also qualify for the child tax credit of $1,000 per child, but if so, their refund goes up to $8,015

Actually, they can earn far more and still qualify for EITC. Plug in income of 24,000, filing status head of household, 3 children, and you get 4206 federal plus 2103 maryland for a total refundable EITC of 6309 + any child credit if they qualify by age. It is basically a subsidy for low paying jobs.

[ms maggie]

mine have.

Fed tax rates have not gone up. So either you are in a higher tax bracket than before or you really need a better CPA