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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: txdoda
Don't forget that for violence committed with firearms, the category of "child" goes to at least 21.
81 posted on 06/05/2003 7:05:18 AM PDT by FourPeas
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To: FourPeas
"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?"

With six kids and being a "single" mother, it sounds like the only ones getting on top are her numerous boyfriends.

But seriously, to get "on top" is not magic. You just have to make the "right" choices. But, that's a hard thing to do if all you are looking for is today's self-gratification.

It sounds as if this whiner has been making the "wrong" choices for a long time and is now reaping what she has sown. Now she wants some of our money to compensate her for her ongoing foolishness! Naturally, the Democrats and a number of stupid Republicans will stumble over themselves to oblige giving her what she wants.

82 posted on 06/05/2003 7:48:11 AM PDT by Gritty
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To: FourPeas
The 2003 Tax Estimator

A single parent of 6 has a ZERO tax rate under the Bush plan.

83 posted on 06/05/2003 7:51:54 AM PDT by Smedley
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To: FourPeas
This woman, who has no business having six children BTW, probably does not differentiate between deductions that are taken for Federal taxes, state taxes, social security, medicare, etc. All she probably sees is that when she does the math at the end of the week, what she receives is less than what her hourly wage times 40 is. Therefore, she thinks she is paying tax and should get this refund or credit.
84 posted on 06/05/2003 7:54:00 AM PDT by riri
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To: FourPeas
Don't forget that for violence committed with firearms, the category of "child" goes to at least 21.>>>>>>>

Yes, I know, I also forgot to post that your "child" cannot consume alcohol until he's an 'adult' of 21, and I'm sure I missed many more.

Bad enough gov't has created a never-ending mound of red tape/paperwork for 'grown-ups' to deal with, now they've decided to dump the same on our teens.

So is your 17 yr. old a 'child' or an 'adult'?.....don't ask any TWO gov't officials, cuz you're bound to get at least THREE different answers....
85 posted on 06/05/2003 7:54:16 AM PDT by txdoda ("Navy-brat")
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To: FourPeas
this is so sick These people PAY NO TAXES so they get none back.

Simple math nothing from nothing leaves nothing.

Had they payed into the tax system like I do then they would get a tax break,

86 posted on 06/05/2003 7:54:38 AM PDT by Gone_Postal
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To: HassanBenSobar
I can tell you, this woman does not pay income tax at all. How do I know? My income was $20,000 per year with one child. I got back ALL I had paid in every year until my son turned 18. So, in effect, I did not pay income taxes. The treasury just held my money for a year. It is the same for this woman and with earned income credit thrown in, she actually gets back MORE than she pays in each year. I am so sick of the Dem's "tax cut for the rich" line I could scream! If a person doesnt pay taxes, there is nothing to cut. DUH! How hard is that to understand? On another note, where is the father(s) of these six kids while she is having such a hard time and expecting the government (read us) to help pay for raising them? Nevermind, that is a rant for another time. Excuse me while I go take an aspirin. :-)
87 posted on 06/05/2003 8:04:23 AM PDT by D1X1E
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To: FITZ
Maybe her husband ...

Sarcasm right? I maybe missed the reference in the article to a husband since it was so annoying that I sort of skimmed through it. Odds are that none of the chillun have the same father.

88 posted on 06/05/2003 8:13:40 AM PDT by from occupied ga (Your government is your enemy, and Bush is no conservative)
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To: bethelgrad
You have nothing to feel bad about. And as you pointed out, soon you will graduate and be paying more than your fair share of taxes, some of which will no doubt go to support people like miss 6 kids there in the article. Good luck to you and your family.
89 posted on 06/05/2003 8:15:24 AM PDT by D1X1E
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To: FourPeas
"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."

How does one give tax cuts to those who don't pay taxes? Oh, it's not a tax cut. It's a hand out.

90 posted on 06/05/2003 8:21:40 AM PDT by MEGoody
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To: Coffee_drinker
She pays ZERO

Actually, with the earned income tax credit for six kids, she pays much less than zero. I'll bet she steals 5 figures to the plus side. Any tax accountants out there want to add it up?

91 posted on 06/05/2003 8:22:04 AM PDT by Orbiting_Rosie's_Head
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To: GovernmentShrinker
"This is one of many reasons why I'm absolutely 100% pro-choice and in favor of public funding of abortions."

So you support murder? I see.

92 posted on 06/05/2003 8:22:55 AM PDT by MEGoody
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To: FITZ
"No ---she isn't at least working."

Sure she is. She's just self-employed, starting a small business. (But no, she shouldn't get a 'tax cut' since she didn't pay any.)

93 posted on 06/05/2003 8:27:55 AM PDT by MEGoody
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To: FITZ
Let me know when you come up with a way to get utterly irresponsible people to behave responsibly. In the meantime, we have to deal with the reality that they don't.
94 posted on 06/05/2003 8:28:18 AM PDT by GovernmentShrinker
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To: FourPeas
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.

This is so achingly typical that you couldn't credibly make it up - the writer obviously doesn't consider that that $400 is YOUR MONEY that YOU EARNED, not money that the government magically dispenses like candy from a parade float. This isn't rocket science.

95 posted on 06/05/2003 8:37:35 AM PDT by Billthedrill
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To: optimistically_conservative
Interesting link at #50.

Go through the calc's, and a family with 2+kids get EITC up to a full time hourly wage of $15.45 per hour. That's $32 grand in wages. That's a very good wage! Ms Palmer at $15k gets $3600 per year. I could use an extra $300 per month!

Then you look up the tables for food stamps in Michigan at the link at #80, and Ms. Palmer is eligible to get food stamps up to a wage base of $38,700 per year.

Not bad, I'm beginning to feel less sorry for the "poor."

It takes a village, doncha know!
96 posted on 06/05/2003 8:52:34 AM PDT by aShepard
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To: basil
"The dims will harp on this forever"

They are already complaining about it at a community message board where I hang out. I just posted a "why should someone be given a tax credit refund when they dont pay any tax to begin with" question, ill let you know if they try to defend it.
97 posted on 06/06/2003 12:26:37 PM PDT by Rebelbase (........The bartender yells, "hey get out of here, we don't serve breakfast!")
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To: FourPeas
" "What do you have to do to get on top?" "

With 6 kids at 26....sounds like being on TOP may be what got you in the mess you're in!!!!
98 posted on 06/06/2003 12:29:11 PM PDT by Ga Rob ("Life's tough...it's even tougher when you're stupid"....The Duke)
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To: FourPeas
She pays no taxes.

She gets no tax cut.

The left wing knows better. They are banking on the fact that their constituency is as ignorant as they ever were (you know...the ones that could't read a ballot designed for a person with a third grade reading level!?!?).
99 posted on 06/06/2003 12:33:32 PM PDT by Constitutional Patriot
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To: HassanBenSobar
"it's got to be really miniscule."

Yeah...it comes out to $0.00

100 posted on 06/06/2003 12:34:46 PM PDT by Constitutional Patriot
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