STORM2K

From the television, radio, and even a slip in my electric bill, there is a message on making sure you claim your "earned income tax credit" (EIC) this year. This makes my blood boil, I really disagree with the whole thing? Why? Because I don't believe that someone should get back thousands more than they paid in. I would have no problem with the families that fall below this income level to just get back what they paid in, which would mean that they paid NO payroll income tax, but how is it fair to those of us who pay tax that they get back money, sometimes thousands of dollars that they did not pay in. Where is this money coming from? It's coming from those who made above the limit and now have to pay higher income taxes to balance out what they are collecting. Doesn't that go against what a "tax" is. Also, why is the gov't or the IRS pushing it so hard?

Dh's brother is married with 3 kids. He hardly keeps a job more than a couple weeks, and served time in jail for several months out of the year. Guess what, he collects over $4K on his refund. I would estimate he worked less than 4 months out of the year. I'm so glad he's able to suck up my taxes yet again.

Personally, I don't have a big problem with the EITC. It's better than outright welfare, as you have to work to qualify for EITC.

The problem with that, gtalum, is that some of the families that qualify for the EIC do get various forms of welfare, such as medicaid, food stamps, etc. I know first hand of someone who collected a welfare check for part of the year, and still qualified for the EIC. The amount that was collected from EIC fair exceeded what the welfare check would have been if collected for all 12 months.

No system is perfect, but the EITC is a great program. Redistribution, to some extent, is essential in our economy.

Plus, qualifying for the EITC does not mean you get 100% of your withheld taxes back.

As for why they push it... I'd guess because of how it spurs the economy. People who qualify for the EITC spend every last dime of their income. It's $4,000 that ends up back in the economy almost immediately. I haven't really seen it pushed by the IRS anymore than any other tax break. Where I really see it pushed hard is at the county level. Counties benefit greatly from the sales tax boost.

People who make more money should save their money in interest bearing accounts or on the stock market and watch that money grow thanks, in part, to the money pumped through the economy by redistributive programs.

HollynLA wrote:The problem with that, gtalum, is that some of the families that qualify for the EIC do get various forms of welfare, such as medicaid, food stamps, etc. I know first hand of someone who collected a welfare check for part of the year, and still qualified for the EIC. The amount that was collected from EIC fair exceeded what the welfare check would have been if collected for all 12 months.

I get the Earned Income Credit. I am not on welfare. Raising a child in this day and age is quite expensive from health insurance right on down to school clothes and supplies. I never get back enough Earned Income to cover the cost for that year. I also take some of the EIC money and put it into my daughters college fund.

We have gptten the EIC in the past few years when we were out of a good job. My hubby busted his butt and made not so good paychecks. It was always helpful when that check came in so I could catch up on stuff. I think they need to raise the minium wage up.... In Texas its still 5.15 and hour! That is just appualing.... but thats another discussion....

I also take some of the EIC money and put it into my daughters college fund

.

That's wonderful, but I don't get any EIC and I cannot afford to have a college fund for my children.

People who make more money should save their money in interest bearing accounts or on the stock market and watch that money grow thanks, in part, to the money pumped through the economy by redistributive programs.

People who make 50K or 60K with a family usually cannot afford to invest money. It takes all they make to live as well.


I think people are missing the point. We all know it's expensive to raise a family, it's expensive for everything, and I'm sure if you get the EIC, you're all for it. But what about those working families above that bracket (and I'm not talking about wealthy people either) who have to pay higher taxes to offset the EIC cost. Is it fair to them? It's taxes that were taken off of their wages. I just know of too many families that get it and collect back way more than they paid in. OH that reminds me, I know of someone who paid for her boob job with her EIC tax refund.

My husband and I are in the higher tax bracket and we still get the EIC. I have no idea who your tax preparer is, but you need to investigate.

Sorry your not getting it Holly ...But if you were you would be extremly gratefull for it, like my family...

My husband and I are in the higher tax bracket and we still get the EIC. I have no idea who your tax preparer is, but you need to investigate.

You obviously fall within the limits of income for receiving the EIC. I don't need to look into who is doing my taxes, I do not qualify and no amount of finagalling is going to help. I paid an extreme amount of taxes this year, glad it's benefiiting others.

HollynLA wrote:

My husband and I are in the higher tax bracket and we still get the EIC. I have no idea who your tax preparer is, but you need to investigate.

You obviously fall within the limits of income for receiving the EIC. I don't need to look into who is doing my taxes, I do not qualify and no amount of finagalling is going to help. I paid an extreme amount of taxes this year, glad it's benefiiting others.

I hate to hear it though. Sorry if I sounded uncaring.

It also depends on the number of kids you have. Two families may have the exact same Adjusted Gross Income, but if one family has more kids than the other, they may qualify for some EITC while the other doesn't.

In the vast majority of cases, the EITC does not result in a net negative tax liability. It's just one more tax deduction out of many. The rationale behind the EITC is to help offset the regressive nature of so called payroll taxes (ie Medicare and Social Security taxes).