Even worse, consider the abomination of Earned Income Credit. Millions of people pay NO taxes whatsoever, AND get thousands in “refunds.” For businesses that cater to the lower rungs of the socio-economic ladder, Tax Season, not Christmas, is the #1 season of the year. The recipients view this (accurately!) as free money, and they treat it as such. Great time of year for selling jewelry, car wheels, and other such “essentials.” And, if you’d like to be yet a little more infuriated on this fine day, rest assured that tons of these recipients have this system perfected to an art. They know exactly how much they need to earn during the year in order to qualify for the max “refund.” Many of them will stop work to avoid exceeding some number that might reduce their “refund.”
The EIC is the scam of all scams and I bet half the people of this country have no clue what a stupendous ripoff the whole thing is.
MM
I just explained the EIC to my teenagers today. They thought I was wrong! Such a thing cannot exist! It doesn’t make sense!
Between EIC and illegals and cash/bartering, we’re in for a ride of our lives. Especially when several of the groups start screaming when they have to pay some taxes.
Also, the SAD thing is that when you get EIC $$, it becomes a game how to make more money and still stay under the line to pay nothing so it becomes an ingrained behavior.
Proposed by Nixon, signed into law by Ford and increased under every administration since, with no exceptions.
The EIC is yesterday’s refundable tax credit. Here is the current list.
- Earned Income Credit
- First-time Homebuyer Credit
- Excess Social Security Credit
- Additional Child Tax Credit
- Health Coverage Tax Credit
- American Opportunity Credit – partly refundable
- Making Work Pay and Government Retiree Credits
You are right that the IRS has been turned into a welfare agency for the favored non taxpayers. Refundable tax credits provide a tremendous incentive for tax fraud as well as disincentive to produce. At a time of plunging tax revenues, refundable tax credits are a large part of the deficit explosion. I am sure that illegal aliens are receiving large amounts of tax welfare.