How can tax credits exceed tax paid.... ???
“How can tax credits exceed tax paid.... ???”
They should not. Using the tax system as a welfare provider. Been that way for a long time.
It’s damned WELFARE for those already getting welfare of some sort and a REDISTRIBUTION OF WEALTH; not to mention the raising of taxes of many MIDDLE CLASS people and lying about it.
“How can tax credits exceed tax paid.... ???”
Earned Income Tax Credit passed in exchange for eliminating some forms of welfare. Instead of paying someone to sit on their butts, you have them work and then give them a bonus via the tax system.
“The earned income tax credit (EITC), first proposed in the early 1970s, was signed by President Ford. It was later substantially expanded by President Reagan, who deemed it the best anti-poverty, the best pro-family, the best job creation measure to come out of Congress.”
Other refundable credits include some for education, which then functions like a grant to help a student with expenses outside of tuition.
Other tax credits can only reduce your tax burden to zero, and then become meaningless beyond that point.
The Earned Income Tax Credit is for the benefit of those who have no tax liability, AT ALL, and is a redistribution of funds, which are paid for by the higher rates applied to those earning more.
Still required to file a return, though. Neat little scheme that has been exploited by a number of illegal resident aliens, and if once established on the tax rolls, may even be collected if they have been deported back to their own country.
Simple, it’s called a handout.