Earned Income Tax Credits

[AVG-JOE]

it sounds like a huge tax increase for Matt and me....now that i am not working and bringing in any income, and Matt is only working a little more than part time, we pay a little less than 5% income tax, and pay more SS and Medicare taxes, (and much more in property taxes) than income taxes....at one time when we both were in our heyday we paid around 20% after we took all of our deductions on about $150k+ a year, and didn't miss a dime of it....(truthfully, we really didn't, other than wishing we had some of that income tax money we had paid, now, in our own savings to help us 'get by' now that we are poor )

A 15% flat rate income tax, would be a huge increase and a major burden on our survival....we are "just" making ends meet now.

How about 15% on all earnings in excess of $25,000 per year? I would be o.k. with that as long as ALL citizens earned their first 25k tax free.

How about we cease taxing income all together and go back to taxing commerce?

I like the way you're thinking, but I believe that for the tax code to be fair, those with higher incomes do need to kick in a bit more than their retail spending would require without making the consumption tax a true burden on the lower incomes.

 

[The T]

How about 15% on all earnings in excess of $25,000 per year? I would be o.k. with that as long as ALL citizens earned their first 25k tax free.

How about we cease taxing income all together and go back to taxing commerce?

I like the way you're thinking, but I believe that for the tax code to be fair, those with higher incomes do need to kick in a bit more than their retail spending would require without making the consumption tax a true burden on the lower incomes.

Then look at the FAIRTAX...

 

[iamwhatiseem]

EITC is ridiculous. It should be impossible that someone get more back then they gave in.
It is income redistribution on a grand scale.

it is better to have them working, getting back what they paid in to SS and Medicare taxes, than to have them just sit on their bums and collect Welfare.

(the SS taxes, specifically the surplus SS taxes paid in, is just like paying income tax...it is used to pay for what income taxes should be paying.)

they also pay gas taxes and cigarette taxes, that are federally collected to pay for gvt spending....

no one gets away with not paying some kind of taxes in this country.

Fine...perfect.
What I am saying is they should not get back MORE in Federal taxes than they paid in. As you point out, everyone pays taxes. I have no problem with people paying NO federal taxes, I have a problem with them getting a windfall check in March for $1,000's of dollars more

 

[AVG-JOE]

How about we cease taxing income all together and go back to taxing commerce?

I like the way you're thinking, but I believe that for the tax code to be fair, those with higher incomes do need to kick in a bit more than their retail spending would require without making the consumption tax a true burden on the lower incomes.

Then look at the FAIRTAX...

Americans For Fair Taxation:

Seems like a step in the right direction, but I still think it would be more fair to drop the consumption tax way down from the 23% sales tax proposed and keep a very modest (under 10%) income tax on income in excess of an amount in the millions, unless of course the 23% is imposed on capital spending as well as consumption spending.

They also seem to have the door open to exemptions, refunds and legislated tweaks which history proves congress can't be trusted with.

I'll take it if it gets traction, but with trepidation.

 

[The T]

I like the way you're thinking, but I believe that for the tax code to be fair, those with higher incomes do need to kick in a bit more than their retail spending would require without making the consumption tax a true burden on the lower incomes.

Then look at the FAIRTAX...

Americans For Fair Taxation:

Seems like a step in the right direction, but I still think it would be more fair to drop the consumption tax way down from the 23% sales tax proposed and keep a very modest (under 10%) income tax on income in excess of an amount in the millions, unless of course the 23% is imposed on capital spending as well as consumption spending.

They also seem to have the door open to exemptions, refunds and legislated tweaks which history proves congress can't be trusted with.

I'll take it if it gets traction, but with trepidation.

Fair enough...

 

[Zander]

It's retarded. The tax code needs to be easy- 1 flat rate for all, including corps. No deductions, no credits, no social engineering. How does 15% sound?

it sounds like a huge tax increase for Matt and me....now that i am not working and bringing in any income, and Matt is only working a little more than part time, we pay a little less than 5% income tax, and pay more SS and Medicare taxes, (and much more in property taxes) than income taxes....at one time when we both were in our heyday we paid around 20% after we took all of our deductions on about $150k+ a year, and didn't miss a dime of it....(truthfully, we really didn't, other than wishing we had some of that income tax money we had paid, now, in our own savings to help us 'get by' now that we are poor )

A 15% flat rate income tax, would be a huge increase and a major burden on our survival....we are "just" making ends meet now.

I hear you. The first 25K could be exempt from tax. That levels the playing field quite a bit don't you think? Anything is better than the horrowshow we have now. I like a simple, flat tax with a one page form. I fill out at least 6 separate, detailed, and oh so complicated documents- just for the feds! God forbid I am ever audited - I'd be buried in paperwork!

 

[Polk]

Does anyone else think it's pretty stupid to pay for a bureaucracy whose job is to collect money from people and then give it back, opening the doors wide to political favoritism, fraud and abuse?

Earned Income Tax Credit (EITC) Questions and Answers

A Credit With Too Few Takers - washingtonpost.com

New Research Findings on the Effects of the Earned Income Tax Credit

The Social Contract - The EITC and Fraud - Section 1

Earned-income tax credit

​

Whose idea was this anyway?

The time has come for simple and fair taxes in this country.

Political favoritism? The process runs on a formula. Like or dislike it, it's pretty hard to say it's playing political favorites.

As for the origin, it comes from a right-wing British politician from the 1940s, though a more well-known advocate was Milton Friedman (who wanted it to replace all forms of welfare).

 

[Polk]

It's retarded. The tax code needs to be easy- 1 flat rate for all, including corps. No deductions, no credits, no social engineering. How does 15% sound?

In practical terms, you can't just throw out a number. The change would need to be revenue neutral.

 

[Polk]

A redistribution of wealth. Most of the people getting EIC are in the lower part of the wage bracket and they have to have worked some to be eligible. These are the people who are really suffering because of the food and gas increases.

Yes, it appears to a little complex for some people but it puts money back into those hands of the people who will spend it and need it. And that is what we need now consumer spending.

There will never be a simple tax code in the US because of all the special interests power in Congress.

Don't take this personal, but Bullshit! There will be a simple tax code once people demand it like people are squeaking their wheels about spending in general.

We, The People should be dictating what tax congress can impose and We, The People should demand that congress cut up the credit card and spend no more than they take in. Many of us are ready to march to DC to demand a ground-up rebuild of the tax code, all we lack is leadership.

Most people would love the sound of your idea... then immediately hate it when you tell that means no more deducting mortgage interest, no more child tax credit, and no more deduction of their medical expenses.

 

[Polk]

How about we cease taxing income all together and go back to taxing commerce?

I like the way you're thinking, but I believe that for the tax code to be fair, those with higher incomes do need to kick in a bit more than their retail spending would require without making the consumption tax a true burden on the lower incomes.

Then look at the FAIRTAX...

Which would require rates of close to 50% to be revenue neutral. Good luck selling the public on that one.

 

[AVG-JOE]

EITC is ridiculous. It should be impossible that someone get more back then they gave in.
It is income redistribution on a grand scale.

it is better to have them working, getting back what they paid in to SS and Medicare taxes, than to have them just sit on their bums and collect Welfare.

(the SS taxes, specifically the surplus SS taxes paid in, is just like paying income tax...it is used to pay for what income taxes should be paying.)

they also pay gas taxes and cigarette taxes, that are federally collected to pay for gvt spending....

no one gets away with not paying some kind of taxes in this country.

I would tend to agree with the sentiment if not the procedure if we were encouraging a decent work ethic using surplus funds.

Putting that kind of luxury spending on a credit card is somewhere between stupid and scary.

 

[Dont Taz Me Bro]

EITC is ridiculous. It should be impossible that someone get more back then they gave in.
It is income redistribution on a grand scale.

it is better to have them working, getting back what they paid in to SS and Medicare taxes, than to have them just sit on their bums and collect Welfare.

You present a false choice, because there is another option. Significantly scale back the welfare state or end it altogether.

 

[007]

It's retarded. The tax code needs to be easy- 1 flat rate for all, including corps. No deductions, no credits, no social engineering. How does 15% sound?

it sounds like a huge tax increase for Matt and me....now that i am not working and bringing in any income, and Matt is only working a little more than part time, we pay a little less than 5% income tax, and pay more SS and Medicare taxes, (and much more in property taxes) than income taxes....at one time when we both were in our heyday we paid around 20% after we took all of our deductions on about $150k+ a year, and didn't miss a dime of it....(truthfully, we really didn't, other than wishing we had some of that income tax money we had paid, now, in our own savings to help us 'get by' now that we are poor )

A 15% flat rate income tax, would be a huge increase and a major burden on our survival....we are "just" making ends meet now.

How about 15% on all earnings in excess of $25,000 per year? I would be o.k. with that as long as ALL citizens earned their first 25k tax free.

That's decent, and then also don't tax SS or veterans disability compensation at all. It's a pittance anyway.

 

[boedicca]

Yes, it is time to get rid of "expenditures through the tax code".

 

[AVG-JOE]

It's retarded. The tax code needs to be easy- 1 flat rate for all, including corps. No deductions, no credits, no social engineering. How does 15% sound?

it sounds like a huge tax increase for Matt and me....now that i am not working and bringing in any income, and Matt is only working a little more than part time, we pay a little less than 5% income tax, and pay more SS and Medicare taxes, (and much more in property taxes) than income taxes....at one time when we both were in our heyday we paid around 20% after we took all of our deductions on about $150k+ a year, and didn't miss a dime of it....(truthfully, we really didn't, other than wishing we had some of that income tax money we had paid, now, in our own savings to help us 'get by' now that we are poor )

A 15% flat rate income tax, would be a huge increase and a major burden on our survival....we are "just" making ends meet now.

I hear you. The first 25K could be exempt from tax. That levels the playing field quite a bit don't you think? Anything is better than the horrowshow we have now. I like a simple, flat tax with a one page form. I fill out at least 6 separate, detailed, and oh so complicated documents- just for the feds! God forbid I am ever audited - I'd be buried in paperwork!

How stupid we must look to all the other countries, considering what we spend in time and resources just to do the fucking paperwork it takes to work in America.

H&R Block Inc. (NYSE:HRB) has served more than 400 million clients since 1955 and generated annual revenues of $4.4 billion in fiscal year 2008.

Emphasis mine.

Business Opportunities Journal. Tax Related Opportunities.

And that revenue is generated by just ONE of the many competitive choices in the marketplace.

 

[AVG-JOE]

It's retarded. The tax code needs to be easy- 1 flat rate for all, including corps. No deductions, no credits, no social engineering. How does 15% sound?

In practical terms, you can't just throw out a number. The change would need to be revenue neutral.

I disagree. A truly fair tax code will most likely increase overall revenue - after the debt is paid off and we have a buck or two in the bank, we can scale back the single, solitary rate that EVERYONE pays.

 

[AVG-JOE]

A redistribution of wealth. Most of the people getting EIC are in the lower part of the wage bracket and they have to have worked some to be eligible. These are the people who are really suffering because of the food and gas increases.

Yes, it appears to a little complex for some people but it puts money back into those hands of the people who will spend it and need it. And that is what we need now consumer spending.

There will never be a simple tax code in the US because of all the special interests power in Congress.

Don't take this personal, but Bullshit! There will be a simple tax code once people demand it like people are squeaking their wheels about spending in general.

We, The People should be dictating what tax congress can impose and We, The People should demand that congress cut up the credit card and spend no more than they take in. Many of us are ready to march to DC to demand a ground-up rebuild of the tax code, all we lack is leadership.

Most people would love the sound of your idea... then immediately hate it when you tell that means no more deducting mortgage interest, no more child tax credit, and no more deduction of their medical expenses.

And THAT is some of the very bullshit that our economy is mired in right now.

The change in the paycheck and reduction in paperwork would more than make up for it.

 

[AVG-JOE]

it sounds like a huge tax increase for Matt and me....now that i am not working and bringing in any income, and Matt is only working a little more than part time, we pay a little less than 5% income tax, and pay more SS and Medicare taxes, (and much more in property taxes) than income taxes....at one time when we both were in our heyday we paid around 20% after we took all of our deductions on about $150k+ a year, and didn't miss a dime of it....(truthfully, we really didn't, other than wishing we had some of that income tax money we had paid, now, in our own savings to help us 'get by' now that we are poor )

A 15% flat rate income tax, would be a huge increase and a major burden on our survival....we are "just" making ends meet now.

How about 15% on all earnings in excess of $25,000 per year? I would be o.k. with that as long as ALL citizens earned their first 25k tax free.

That's decent, and then also don't tax SS or veterans disability compensation at all. It's a pittance anyway.

I work for Social Security in FL - $25,000 / year in SS Retirement benefits is as rare as the steak I grilled last Friday.

 

[Annie]

It's retarded. The tax code needs to be easy- 1 flat rate for all, including corps. No deductions, no credits, no social engineering. How does 15% sound?

You want 15% of my 11k income this year? Don't spend it in one place.

 

[American Horse]

Does anyone else think it's pretty stupid to pay for a bureaucracy whose job is to collect money from people and then give it back, opening the doors wide to political favoritism, fraud and abuse?

Earned Income Tax Credit (EITC) Questions and Answers

A Credit With Too Few Takers - washingtonpost.com

New Research Findings on the Effects of the Earned Income Tax Credit

The Social Contract - The EITC and Fraud - Section 1

Earned-income tax credit

​

Whose idea was this anyway?

The time has come for simple and fair taxes in this country.

I think it has been a good thing; It has enouraged people who would've seen work and a pay check only marginally advantageous to find work and advance themselves. It has tied more people into tax compliance; folks who were operating under the table for cash and not filing form 1040. I see it as a good way to get deadbeats into the system like you and me and once in they are more easily followec and kept in compliance. The EITC phases out as they become more vested in their jobs and advance with pay raises, more responsible, etc.