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Do away with "earned income tax credit"
16 Comments
POSTED: Friday, August 17, 2012 - 7:14am
UPDATED: Tuesday, September 11, 2012 - 10:00am
TYLER — With our contry's tax code as complicated as it is, do you this we should completely get rid of the "earned income tax credit"?
KTBB's Garth Maier TalksBack with East Texans.
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Instead of domolishing EIC, why can't they revise it. Give it to the WORKING class!! I receive EIC, but let me tell you I still put my 40 plus hours in at work every single day. I'm raising two children, and trying to maintain my bills, just like everyone else. Why punish the working people who qulaify for it!!! ?? I honestly believe that if your getting goverment assistance, you shouldn't be able to qualify for it!!
My husband, was working for the Federal government in Arkansas, he had so many state taxes taking out, I know for a fact it is all going to the welfare system, here in Texas my son, pays child support for my grandbaby, my son and the mother both have joint custody, but he doesn't get earned income credit when he files, she gets it, I'm all for getting rid of it, and get some of these people off welfare.
How about that, something Freedom and I agree with Don on. We need a flat tax. Problem is the "evil rich" who are accused of "not paying their share" or not paying as much as the poor will morph into the evil rich who would be getting an unfair tax cut. The other is the AltMinTax. It was started to recoop taxes lost in screwy tax breaks. Simplify the tax code by eliminating the screwy tax breaks and eliminate the AMT. Cutting the EIC and child tax credit will not be popular with most everyone.
I don't know about that jp, if the rich are paying what mitt is paying it would be an increase if they had to pay the same % that I pay not to mention those who earn more than 106 K annual would be paying payroll tax on all of their income not just the income up to 106K including investment income.
According to a CBO 2009 report, the top quintile earned 50.8% of all income and paid 67.9% of income all income taxes with an average rate of 14.4% (2007 table) and 25% of all federal tax. N I didn't link. I must confess I don't know how. Long term investment income( longer than one year) has a top rate of 15%. The rate is higher for short term investment, similar to income tax rates. Buffet isn't being honest in his tax comparison, and his secretary must have a very good salary.
Lets not forget all the tax deductions to lower that % too that are not afforded to those at a lower income level but may pay a higher % on total income because deductions are not more than standard.
The lower incomes can still itemize just like the rich. But % to income, the standard deduction is higher than itemizing. There just reaches a point where it's better to itemize. As for paying the same rates over 106k, the top 10% pay a rate of 16.2%, top 5% pay 17.6%, top 1% pay 19.0%. Thse are income tax rates only, not counting property, sales, SS and Medicare, insurance, 401k or any other you want to include in what you pay vs. just tax on investment income.
Your numbers do not add up Jp, I Pay 21% on less than 100K and if I work overtime it goes up to 35%. What you fail to understand is the payroll tax and that even those who are not in the top 1 to 10 % income bracket also pay property, sales & 401k,Medicare, insurance. The cap on 106K Payroll tax is the SS & those who earn more than 106K DO NOT PAY ANY SS TAX ON INCOME OVER 106K
But if I am paid a 2 BILLION ANNUAL SALARY I pay the same payroll tax as someone who is paid a 106 thousand annual salary and no payroll tax on any of my investment income that I did no actual labor for under current law.
The earned income tax credit mainly aides the poor & lower middle class, so it's no wonder that Republicans want to do away with it. You don't have to look far to see how the Republican elitist attitude is being manifested. Remember that Hitler was democratically elected...
The earned income credit is free money. When a person can get a refund that amounts to one half of their total income something is wrong. As a tax preparer I have learned people play the system and are looking for this credit. Approximately $50 billion dollars is "given out" nationally. I have had taxpayers say they are "going to the boats" or "paying off their car" with this money. That is not what the credit was designed to do. If you are over 65 you can not qualify.
The earned income tax credit is just free money to those who qualify.
Get rid of every deduction and credit for everyone not just the child tax credit. Lift the cap on the payroll taxes too, if I have to pay income and payroll taxes on all of my income so should everyone else no matter how much the income is. This includes investment income. and corporations. The tax rate should be the same % for everyone too.
Isn't that kinda like rolling up the window on our open convertable to keep out the rain. Our tax code has much bigger problems than just the EIC. The Alternative Minimum Tax is one example. Our tax code needs to be trashed and one written that is simple and straight forward. I disagree with a national sales tax simply because I don't believe it will cure what its proponants think it would.
LASTMANSTANDING August 17, 2012
at 2:18pm
Like most government programs that were not thought out before they were place in action as law, earned income credit is being abused. I believe the deduction for dependents should be raised and earned income credit be removed. If this could be done in steps and everyone would know they no longer would get a free ride, the bus would be empty. There is a level of income needed to raise a family, there also is a point of responsibility where you need to stop having kids or get a better job.
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