Clinton advocates earned income tax credit in LR appearance

LITTLE ROCK Former President Bill Clinton visited a tax assistance session in a working-class Little Rock neighborhood today to encourage people to take advantage of the earned income tax credit. The tax help was being offered in the chapel meeting hall of Promiseland Church Ministries in southwest Little Rock. Clinton says he showed up at the afternoon session because he believes it is important to get the word out on the tax credit available to working people.

Clinton says the credit is the only tax cut on the books that is for working people.

Clinton said that last year, 55-thousand families in Arkansas who were eligible didn't apply for the credit.

Tomorrow, Clinton will bring the same message to residents in Gulfport, Mississippi, and Baton Rouge, Louisiana.

The earned income tax credit is not a "tax cut" it is a "welfare payment" designed to buy votes.

If you get back more than you payed into the IRS you are part of the problem.

Around here people know just how much they can earn a year and still get their check. They stop working around Oct/Nov so they can get their "earned" money.

The earned income tax credit came from the Reagan Administration. (I am a big time Reaganite.) The idea was good ... but like every other government program, it has been twisted into something else.

The idea was back in the mid-80's ... poor people have a choice. They can work a low paying job or go on welfare. Many were choosing welfare because they could make more than they could with their minimum wage job. The Reagan admin reasoned, it's better for people to work, even at minimum wage because sooner or later they will move up and out of the minimum wage level. There's no chance if they continue on welfare.

So, they reasoned, let's give them an "earned income tax credit", actually a reverse tax that makes sure that while they continue to work, their net income will equal or exceed what they would get through welfare. In theory, a good idea ... inducing more people to work, especially people who would get a government handout anyway if they were not working.

As I said, in theory, a good idea. In reality, not so good. Although some may do as you suggest, work to a point in the year and then quit, the real abuse comes from shacking up. The EITC greatly hinders marriage. Each partner in the arrangement is working a low paying job and collecting the EITC by filing a false tax return showing they are not living at the same address. This lets one "family" collect two EITC's. And of course the government typically does not chase these people down for their false IRS return. Maybe the EITC helps a little because the people do have jobs, but we are paying a lot more for it than the program ever intended.

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