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To: kcvl

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.


5 posted on 03/19/2006 3:38:37 AM PST by PeteB570 (Guns, what real men want for Christmas)
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To: PeteB570

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.


8 posted on 03/19/2006 6:13:10 AM PST by JohnEBoy (AT)
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