So why don't we do two things??

[naturegirl]

End the earned income tax credit and adjust the tax on capital gains. This should prevent people that pay 0 in income tax from getting a huge refund and get those hedge fund managers and Warren Buffet paying their fair share.

 

[Dragon]

We should not do the first because it would increase taxes on those least able to pay them, and further reduce consumer buying power at a time when it is already depressed.

I believe we already do the second. Do you mean tax capital gains at a higher rate?

 

[naturegirl]

We should not do the first because it would increase taxes on those least able to pay them, and further reduce consumer buying power at a time when it is already depressed.

I believe we already do the second. Do you mean tax capital gains at a higher rate?

I just don't understand how someone can get a refund when they pay 0 taxes. That's not a refund. And yes we need to adjust the capital gains taxes.

 

[zzzz]

We should not do the first because it would increase taxes on those least able to pay them, and further reduce consumer buying power at a time when it is already depressed.

I believe we already do the second. Do you mean tax capital gains at a higher rate?

I just don't understand how someone can get a refund when they pay 0 taxes. That's not a refund. And yes we need to adjust the capital gains taxes.

They don't. You cannot get EIC unless you pay taxes. You just get extra back depending on how much you make.

The Earned Income Tax Credit or the EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit
...
To qualify for Earned Income Tax Credit or EITC or simply called EIC, you must have earned income from employment, self-employment or another source and meet certain rules. In addition, you must either meet the additional rules for Workers without a Qualifying Child or have a child that meets all the Qualifying Child Rules for you.

EITC Home Page--It?s easier than ever to find out if you qualify for EITC