The earned income tax credit makes me sick. How can we get rid of this?

Question

It baffles me that just because you don't make a lot of money and happen to have a kid, the government can actually pay you! I can see giving people a break and lowering the taxable percentage to little to nothing, but PAYING them to be poor? No thanks.
I do not have kids, but I am married.
I am against married couples getting a tax break as well.
Another interesting element--I am a registered Republican, and am generally opposed to high taxes as a whole.
But rewarding people for having children they cannot afford seems a little ridiculous.
Let the roasting begin.

I do not have (major) issues with people who receive this credit and do not make money off of it. I have issues with those who profit off of it.
Ex: Those who pay 2k into taxes and get 4k out are much more repulsive than those who pay 4k into taxes and get 4k back.

Answer 1

I"m going to have a different perspective from most. I don't make much, and I have two kids. I don't even have income tax withheld from my check 'cause I know I won't owe anything at the end of the year. I typically get the maximum in Earned Income Credit. (I am looking to move up within my company, and will jump for joy on the day I make too much to get the EIC). BUT, I think that the EIC is wrong, wrong wrong. I understand wanting to help the 'less fortunate' - I am one of the less fortunate. But taking money away from those people who have worked hard and who have earned more to give it to those who have earned less is pure Socialism. I tried for two years in a row to file my taxes WITHOUT claiming the EIC, even though I qualified to claim it. They sent me a check with a letter that said my return was wrong and they owed me money. I'm a tax professional, I knew what I was doing. I just used the money to pay off my student loans. Essentially, the gevernment, and its citizens, lent me money and then paid off their own loan. Odd, isn't it?
What kills me is when people want to use welfare or disability checks to qulalify for the EIC...

Answer 2

How to get rid of the EIC? Write a letter to your Congressperson. Be part of the process.

OK, since you brought it up, I am confused that you see no contradiction in your statements, "...I am against married couples getting a tax break as well" and "... I'm opposed to high taxes as a whole".

You have it backwards... married folks did not get a tax break with the so-called "marital penalty relief" a few years back. They just did not pay higher taxes as a result of getting married. Not only that, the relief only evened out the 15% bracket. All the other disparities ( of which there are dozens) between 2 singles and the same 2 married still exist, so it still pays not to get married.

Moreover, people do not get married for other reasons besides the EIC. People who are receiving Social Security benefits fall into this group. Most of them are too old to have kids and besides, have little or no earned income.

Our beloved government has done some really stupid things over the years, and one good example is the Internal Revenue Code: it is an abomination and should be abolished. Let's replace it with a flat income tax laser targeted at married registered Republicans with no children who are hate mongers. Of course, in fairness, it should not be too high. 90% ought to be about right. lol

I say hate monger (and I have no doubt that you will feel unjustly attacked) because you say that "it makes you sick" to give low income working people an incentive to stay working.
It is our government and its failure to provide appropriate educational opportunities that has created an environment where so many people are below the poverty line.

Walk a mile in their shoes, Bud, and then see how you feel. If you are not part of the solution you are part of the problem.

Answer 3

I also am sickened by the EIC. Last year, my husband and I paid in $3064 in taxes while my neighbor, who only worked for two months and spent the rest of the year living on welfare, received a refund of over $2000. The government already pays her rent (with GRFA),pays all her family's medical costs, buys her food, and gives her cash year round and then at income tax time it is like she has won the lottery! It is like the rest of us have to work to support those who are to sorry to work.

I know some people who do work receive it also but it still is not right. Anybody can make more money if they either get an education or try harder at their job. Nobody should be rewarded for being too lazy to work or too sorry to do better for themselves.

Answer 4

I have mixed feelings about the EIC. For the people it's intended for, people who work all year but don't make much, they can really use it and I don't really have a quarrel with it, although I don't think it should be called part of the tax system, or called a "refund". But there is a high incidence of fraud in the EIC, and I do have a quarrel with those recipients. I also question whether someone who worked maybe two months of the year should be eligible.

Answer 5

You need to write to your representative in the US House of Representatives regarding this issue. The first paragraph of of Article I, Section 7, of the Constitution of the United States of America states that "All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills." Revenue consists generally of import duties, personal income taxes, etc.

Answer 6

I know exactly how you feel. I have family that have kids and they pay in hardly anything in taxes during the year and get like 10 times that back during tax season while someone like me who doesn't have kids and paid out over $2,000 in federal taxes in 2012 and only got a few hundred dollars back. I am sick and tired of people like them that pay hardly anything and get thousands of dollars back in just Federal tax return alone. They go out and blow it and its gone in a month or less.

Answer 7

The origin of the EIC was that working people with children should not be deterred from working because of the payroll taxes involved. The EIC was originally set up so that working people with children, whose income was below certain levels, received a refund of the payroll taxes.

The EIC has evolved to a much larger credit, in the wake of welfare reform. The EIC is a form of welfare administered through the IRS.

The government has programs to help low income people. This is one of them. If it is abolished, something more to your unliking may arise.

Answer 8

And how does this affect you personally? Are you eating any less or not able to pay your light bill because of it? It's here to stay so keep bi*ching. I have two kids and I don't make chump change or work some piece of sh*t job, yet I'm still able to get it. So not ALL people who get the child tax credit are poor and have kids they can't afford. Think before you speak.

Answer 9

I know of several couple with children (who live together) do not get married because of this.

Answer 10

I've benefited at times from this, and I resent your blanket assumptions and accusations and insults.

As far as I recall from the times I did get this benefit, you do NOT get $4000 back in refund in you only paid in $2000 in taxes. Once your tax liability is reduced to zero, you don't get money back that you never paid in.