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MISSING OUT: Poor families face the reality of no tax rebate
The Grand Rapids Press ^ | Wednesday, June 04, 2003 | Ted Roelofs

Posted on 06/04/2003 4:47:05 PM PDT by FourPeas

MISSING OUT: Poor families face the reality of no tax rebate

Wednesday, June 04, 2003

By Ted Roelofs
The Grand Rapids Press


With six children to look after, a broken-down van and an annual income of about $15,000, Kalala Palmer figures she could use a break.

She shops at Goodwill for clothes for her kids and buys them new shoes only on their birthdays. She struggles to pay the YMCA membership she hopes will keep them off the streets.

The 26-year-old Grand Rapids resident also is among millions of working-poor families left out in the cold by the $350 billion tax cut signed in May by President Bush.

"It hurts, but when you've been poor as long as I've been, you just deal with it," Palmer said. "What do you have to do to get on top?"

It's a question under debate this week in Congress, as politicians come under fire for omitting working-poor families from the $400-per-child tax credit going to much of middle-class America.

According to analysis by the Center on Budget and Policy Priorities, the tax cut measure leaves families earning up to $26,625 a year with no tax credit. That affects 8 million children.

At the same time, $400-per-child rebate checks are expected to be in the mailboxes of millions of middle-class households by July.

Though Bush officials defended the measure, it is a void some Republicans are looking to fill before it becomes campaign ammunition for the Democrats.

Senate Finance Committee chairman Chuck Grassley, R-Iowa, introduced a provision Monday to expand the number of families eligible for per-child tax credits -- and to increase the size of those credits -- as part of a broader effort to make the middle-income child credit permanent.

Grassley's proposal would cost up to $90 billion over 10 years.

In contrast, Sens. Blanche Lincoln, D-Ark., and Olympia Snowe, R-Maine, introduced legislation to aid the same poor families, at a 10-year cost of $3.5 billion.

Bush aides say the measure signed by the president May 28 is fair, because low-income families like that of Kalala Palmer pay no income tax. White House spokesman Ari Fleisher said poor and minimum-wage families receive government benefits in other ways, through programs such as food stamps, Medicaid and earned income tax credits.

"By actually forgiving all income taxes and then giving people money beyond that, it's not the same way other people on the income scale are treated," Fleisher said.

U.S. Rep. Pete Hoekstra, R-Holland, agrees.

"Tax reform is not about payments to the working poor," Hoekstra said. "Per-child tax credit is exactly that. It is a credit against liabilities owed to the federal government."

Hoekstra said he is willing to consider extra help for the working poor but would make no promises.

"If there are certain people in the Senate that want to make direct cash payments to the poor, then we should have that discussion. I don't know whether or not I would vote for it."

But U.S. Rep. Vern Ehlers, R-Grand Rapids, believes Congress ought to revisit the issue.

"I think it's a reasonable sort of thing to do," Ehlers said.

Though working-poor families might not qualify for a tax credit because they pay no income tax, Ehlers thought it reasonable to give them some help, too.

"Since the purpose is to help people with children, then it makes sense to be sure it applies to everyone who has children."

Though her circumstances are anything but easy, Kalala Palmer tries to find the humor in life to keep her spirits up.

She recalled a recent discussion with a friend, who informed her that Congress was going to pass tax breaks for individuals who get stock dividends.

"What in the world is that?" she said of stock dividends, starting to laugh. "I ain't got no stock. There's no way I got that stuff. You got to laugh about this stuff because it hurts too much to be crying."

Until January, Palmer worked as a nurse's aide, sometimes working double shifts to try to make ends meet. Then she became worried about her oldest son, Terrell, whom she feared was getting into trouble on the streets.

She quit her job to keep an eye on him, and now earns money making clothing and doing alterations out of her home. Her aunt pitches in to help with child care, and Palmer also gets a federal subsidy to pay most of her rent.

On the wall in her dining room, she keeps a series of sayings she posted at the suggestion of her church pastor. They include such sayings as, "Be Kind to Each Other" and "No Shouting to Each Other," and one reads: "The Palmer name is a good name and we are good people."

Outside her house, Palmer looks at her 1989 Chevy Astro van, with sagging suspension, rusty doors that don't open and a large dent on the right side. She muses what it would be like to get a better car.

"If I had a car and a nice house, I wouldn't know what to do. One day, all these rainy days are going to end."



TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Front Page News; Government; News/Current Events; US: Michigan
KEYWORDS: bushtaxcuts; poverty
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To: Centurion2000
AND most of her rent is paid by "federal subsidies" (a.k.a. you and me and all the other hardworking folks who didn't go out and have 6 kids by age 26 on an income of $15,000).
41 posted on 06/04/2003 6:05:25 PM PDT by GovernmentShrinker
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To: GovernmentShrinker
AND most of her rent is paid by "federal subsidies" (a.k.a. you and me and all the other hardworking folks who didn't go out and have 6 kids by age 26 on an income of $15,000).

Exactly what welfare and related benefits is someone earning $15,000 allowed to receive? I don't want to dispute your point, but I am curious.

42 posted on 06/04/2003 6:06:48 PM PDT by supercat (TAG--you're it!)
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BTTT
43 posted on 06/04/2003 6:15:42 PM PDT by Fraulein
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To: FourPeas
I say we give her the money. Send her an unsigned check with instructions to hold it between her knees until she reaches menopause, at which time the check will be signed. Trust me, it'll be money well spent.
44 posted on 06/04/2003 6:21:11 PM PDT by randog (Everything works great 'til the current flows.)
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To: FITZ
Yeah, she probably gets her child care free, and I've read a bus picks up these employees, to and from work. The Dems wring their hands about low-income paying "payroll taxes", meaning their contribution to Social Security. She will get her windfall at the end of the year, EITC.
45 posted on 06/04/2003 6:22:04 PM PDT by katze
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To: supercat
The criteria for these handouts is not only the annual income, but also the number of dependents in the family. With six dependents, she could probably earn $30K and still be eligible for all the freebies.
46 posted on 06/04/2003 7:02:32 PM PDT by Uncle Sausage
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To: katze
Yeah, she probably gets her child care free, and I've read a bus picks up these employees, to and from work.

Well, on the off chance that she pays for child care, she certainly hasn't gotten any breaks there. The child care credit has remained absolutely unchanged since 1981, the limits have not raised one iota.

No, I don't believe she deserves money for nothing, but at least she is working. We have no idea about the father of the children, maybe he's a bum. Paying people to breed is a bad idea for government whether its welfare or child tax credits.

47 posted on 06/04/2003 7:09:50 PM PDT by hunter112
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To: Coffee_drinker
Is this lady married? "What do you have to do to get on top?"

Well for one thing, you work and save some money before you turn out six children. Marrying a decent guy also helps.

Sheesh! I really don't know how to reach someone like this. She sounds borderline retarded.

48 posted on 06/04/2003 7:10:37 PM PDT by maxwellp (Throw the U.N. in the garbage where it belongs.)
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To: FourPeas
26 and 6 kids? Where's dad(dies)?

Then she became worried about her oldest son, Terrell, whom she feared was getting into trouble on the streets.

Terrell's how old?

Palmer said. "What do you have to do to get on top?"

You're kidding, right? It's a rhetorical question, right?

What's that thing they say about life being hard and being stupid?

49 posted on 06/04/2003 7:10:48 PM PDT by optimistically_conservative
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To: supercat
You may find your answers at the links below. I'd like to know how much of her $15,000 income is already tax funded.

http://www.financeprojectinfo.org/win/dataportal.asp

For example, try the link below and type $7.20/hr for 40 hr days, 52 weeks.
http://www.connect2jobs.org/connect2cash/
50 posted on 06/04/2003 7:24:10 PM PDT by optimistically_conservative
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To: optimistically_conservative
What's wrong with buying clothes at Goodwill? I buy clothes there. Get some great buys.
51 posted on 06/04/2003 7:24:29 PM PDT by WVNan
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To: supercat
I don't know exactly, but with six kids I imagine quite a bit. Also, it doesn't sound as if she's still making $15K -- I think that's what she made before quitting to do random sewing work at home (which she was free to do, since all the benefits were readily available to her). Even while making $15K, I expect that her benefits included housing subsidy (usually requires that the head of household pay 1/4 of their income towards rent, with the rest made up by the feds -- and a home big enough to meet federal requirements for six kids probably costs a lot more than 1/4 of $15K per year), Medicaid coverage for the kids and maybe for herself as well, and food stamps.

Needless to say, if you make $15K and refrain from having children, you're sh*t out of luck, and if you stop at one or two you'll get very little help. This is one of many reasons why I'm absolutely 100% pro-choice and in favor of public funding of abortions. The practice of using children as hostages to get money from people who work is leading us down the road to full-blown socialism at high speed (do you think ANY of those kids will vote for welfare cuts when they grow up?), and expecting totally irresponsible people to use contraceptives reliably is simply ludicrous. The best we can hope for is to get the message out to them that if they get pregnant, they have to get unpregnant fast (at public expense, since they won't have the cash handy, since they spent it all on clothes and booze), or their baby will be immediately and permanently confiscated the first time they ask for public assistance (mandatory sterilization at that point would be a good idea too, but I know I'm just dreaming on that one). If we don't give them the option of getting unpregnant fast, then we're heartless beasts for confiscating their innocent little children "just because their parents are poor", and they'll play this to the hilt at the next election, to get all their socialist candidates elected (none of whom will be anti-abortion, ironically).
52 posted on 06/04/2003 7:28:09 PM PDT by GovernmentShrinker
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To: FourPeas
"What do you have to do to get on top?"

That is a question best answered by an entirely different discussion. One with no hard and fast answer.

But, what does it take to get a tax rebate? Easy. Pay taxes!


53 posted on 06/04/2003 7:32:13 PM PDT by Bloody Sam Roberts (®)
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To: FourPeas
How can anyone miss what they've never had to begin with?
54 posted on 06/04/2003 7:34:20 PM PDT by F16Fighter (Democrats -- The Party of Stalin and Chiraq)
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To: FourPeas
Awwwwwwwww Geeeeeeeeee...
Guess they can't go to the mall and get refunds without having any merchandise to return?

It's so unfair!.
Guess it's easier to write it up this way than simply to state that the bureaucrats want to increase welfare to the permanent parasites?
They just can't seem to find a phrase that makes it easier for nobody to notice.

55 posted on 06/04/2003 7:36:40 PM PDT by Publius6961 (Californians are as dumm as a sack of rocks)
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To: GovernmentShrinker
With regard to abortions.

You are talking about racial genocide now, and Jesse and Al will surely be in your face real quick.
56 posted on 06/04/2003 7:41:03 PM PDT by oldtimer
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To: Howlin
Of course it's back. The Demorats are desperately seeking an issue for the 2004 election cycle. After voting it down, they now want to blame the Pubs!
57 posted on 06/04/2003 7:44:43 PM PDT by TheDon ( It is as difficult to provoke the United States as it is to survive its eventual and tardy response)
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To: FourPeas
Has the earned income tax credit been revoked? A head of household under this plan in her income range gets back 10 fold as much as they paid in.
58 posted on 06/04/2003 7:48:28 PM PDT by takenoprisoner (stand for freedom or get the helloutta the way)
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To: hunter112
The 6 children does play a part. One, even two, "slips" may be forgiven, but at her age, she could easily have 10 more children, at the rate she's going.

"At least she is working"? Since when has the responsibility for taking care of self gone by the wayside? I worked from my early teens until my retirement, and I don't see one person better than the other. I'm tired of taking care of other folks children, to include paying outrageous property tax to send their kids to school. Time for some serious reform.

Currently, I have serious illness, that is proving to be quite expensive. Now, if I had Medicaid, I could keep my money--as is, I pay as long as I can, then they take my home and other assets. Well, I guess I'm really at fault, since I worked so many years, and didn't have a passel of kids I couldn't take care of, so I have a home, retirement income, and ask no one for anything.

59 posted on 06/04/2003 8:43:04 PM PDT by katze
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To: HassanBenSobar
I am a full time student with a wife and two kids. I live on about that much. I'm baring my soul here folks so please understand my reluctance to share this. Not only do I get all my federal and state back during tax season, the child credits make it so that I get more back than I paid to begin with. No I won't be getting a rebate. But I am getting back more than I paid anyway. How could I ever complain?

As a coservative this really hurts my pride, but soon I graduate and enter the world of overtaxation and repay it back many times over.
60 posted on 06/04/2003 8:50:07 PM PDT by bethelgrad (for God and country)
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