Why do we single out the rich with taxes, why not the poor too?

Question

Think about, something many of you may not be aware of. You could be a single parent, living at home with your parents (as so often the case is). Not work all year (i.e. not pay taxes). and Still get an Earned Income Credit for each child and the Govt. will give you thousands of dollars, when you didn't pay anything into the system? Is this not equally as unfair as the rich being able to find loop holes?

Wayne, WRONG. You do not have to work to get the earned income credit. Sorry dude.

Answer 1

You can only claim the earned income credit (EIC) if you have earned income, hence the name. Obviously the system is flawed. There are plenty of low income taxpayers who get thousands of extra dollars annually from the EIC that aren't deserving for various reasons; however, there are probably more people who are deserving. Also, for all the people who think the rich don't pay taxes and all that, that is simply not true. There is a something called the alternative minimum tax (AMT) that kicks in on higher income taxpayers that causes their income to be taxed at 26%/28% rather than lower rates. This is in place to prevent high income taxpayers from not paying enough tax. It's funny how no one ever mentions this fact in the media when they are slamming the rich for "not paying enough taxes."

Answer 2

Cheating on taxes ...like breaking any law...is wrong whether it's done by rich people or poor people.

But, comparing a low-income single mom who might receive a few dollars she's not entitled to...with large corporations and high net worth individuals who can easily pilfer millions of dollars...is like comparing speeding ticket to a double homicide. They both wrong...but they're hardly the same thing.

And honestly... I don't believe the scenario you describe is even legitimate.

I may be wrong...because there are some pretty wacky tax laws on the books....but I sincerely don't believe you can receive a refunded for more than you paid in (unless you're owed a refund from a previous year). I can double check w/ my accountant tomorrow.

In your example, the person was unemployed...and didn't pay any taxes...I don't believe they would be eligible for an EIC as you describe. It's an "Earned Income Credit"...and the person you outlined can't report any "earned income".

Answer 3

Oh brother! I thought the Politics forum was the reserve for made up facts and grossly distorted allegations. Guess we'll have to deal with that silliness here as well now.

Sorry, but your "facts" are distorted to the extent that they're plainly false. The Earned Income Credit is exactly that, a credit based upon your EARNED INCOME. If you don't work and have no EARNED income you get exactly $0 for the EIC.

Study tax law for about 6 months and re-post your question once you know what the hell you're talking about.

Answer 4

Uh, you're not correct re EIC - a person only gets that if they have earned income, i.e. a job - that's why it's called the EARNED INCOME credit. The EIC is calculated on the income tax return, and the amount varies greatly depending on how much earned income the person has. So someone who has NO earned income all year gets zero - someone with very little income would not get much.

Answer 5

A fair tax would be everyone paying 10% of any income with no deductions. You live in this country you drive on the roads collect assistance fly out of a airport then you should pay EVERY ONE PAYS THE SAME.

Answer 6

There are plenty of poor people with jobs that pay taxes dude

Answer 7

It is all about "redistributing wealth". You will never hear a mainstream politician use those words, but most features of the tax code are geared towards that.
The question is-"how much", not "whether".
This is the fundamental difference between liberals and conservatives.

Answer 8

You only get the EIC if are working.

Most of your premise is incorrect.