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Earned Income Tax Credit: The Battleground of Class Warfare

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posted on Nov, 19 2012 @ 01:57 AM
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I read these articles recently and wondered how many income earners who qualify for Earned Income Tax Credit, receives it, and do they actually know that the credits is on the chopping block too?



That includes some earners who did not pay federal income tax in 2012 - the so called "47 percent." In some cases, higher marginal rates, changes to the Earned Income Credit, and a 50 percent reduction to the Child Tax Credit could force some families with zero dollars owed in 2012 to pay more than $2,500 next year.



Seriously, I say this could hurt more poor, then rich, or even middle class. I really believe it would hurt not only the poor, but business also.

As the articles state:


You can even make the argument that the earned income tax credit subsidizes industries that pay low wages. A recent report from the National Employment Law Project (link opens PDF file) named the 50 largest low-wage employers, and among the top five were retailers Wal-Mart (NYS: WMT) , Target (NYS: TGT) , and Sears Holdings (NAS: SHLD) . Restaurant stocks also made a big showing, with Yum! Brands (NYS: YUM) coming in at No. 2 and McDonald's (NYS: MCD) close on its heels at No. 3. Without the earned income tax credit, low-wage earners might not be able to make a living in these jobs, leaving employers either without an adequate supply of labor or having to increase compensation.




In 2012, a married couple filing jointly with three children could earn nearly $56,700 in household income and not owe federal income tax. But if the U.S. goes "over the cliff," that same family would owe roughly $2,557 in 2013, according to a tax estimate calculator created by the Tax Foundation.



So does ATS know how this will effect them ? Do they qualify for these credits?

LINKS:

Earned Income Tax Credit: The Battleground of Class Warfare

The "47 percent" will shrink if U.S. goes over "fiscal cliff"




edit on 19-11-2012 by sonnny1 because: (no reason given)




posted on Nov, 19 2012 @ 02:05 AM
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To me this is part of the problem of why the government is always going after the rich.

Fact the government spends to much
Fact the government does not generate the revenue needed for it to function properly.

The power of taxation was the power given of taxation to fund itself not the people.


"To lay taxes to provide for the general welfare of the United States, that is to say, "to lay taxes for the purpose of providing for the general welfare." For the laying of taxes is the power, and the general welfare the purpose for which the power is to be exercised. They are not to lay taxes ad libitum for any purpose they please; but only to pay the debts or provide for the welfare of the Union." --Thomas Jefferson: Opinion on National Bank, 1791. ME 3:147


www.dailypaul.com...

Tax,Tax,Tax.

People are going down one way for the other.



posted on Nov, 19 2012 @ 02:09 AM
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reply to post by neo96
 


I agree.

Although, I believe this would break the poor, and many of the middle class.

This is going to hurt them, far more then help.



posted on Nov, 19 2012 @ 02:11 AM
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Originally posted by neo96
To me this is part of the problem of why the government is always going after the rich.



The government is controlled by the rich...



You are a silly guy Neo

There are these people called lobbyists...



posted on Nov, 19 2012 @ 02:15 AM
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reply to post by Thepump
 


Dude seriously post on topic and posters are not the topic.

Congressman write laws especially tax laws, and let's be perfectly clear here as the size and power of government grows that creates lobbyists.

Those congressman figured out they get paid more cash when they write more powerful laws more laws more cash then more laws more cash.

That do nothing but pit poor against rich, middle class against rich it is nothing but power and control to keep their jobs.

They don't give a ratts arse about anyone but themselves, and their jobs which is why we have congressman there for over 30 years.
edit on 19-11-2012 by neo96 because: (no reason given)



posted on Nov, 19 2012 @ 02:28 AM
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one thing i would like to note here is who in gods name works
at mcdonalds and earns anywhere near that, i can understand
regional difference in pay and costs but where i live a fast food
worker brings home maybe MAYBE 15k a year if they are full time.

that's 40 hours every singe week all year without fail or vacation,
which most min wage jobs don't offer anyway, i don't see this
effecting most min wage jobs at all honestly.



posted on Nov, 19 2012 @ 02:29 AM
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OK,

We will see how it pans out if they chop it out.

Businesses will lay people off when their profits are lower than the year before.

What does everyone think that people who get the EIC do with the money?

They pay bills and go shopping, because it is the one time of the year that these poor people can go purchase the goods that the rest of you take for granted.

Well see.....

Talking about going over a cliff....

We are already splattered on the pavement below, because of ignorance. People seem to fail to realize that the
problems is more severe than just cutting off $2,500 or more from a family struggling to make ends meet.

Hell lets just take all funds away from the economy..........after all it will fix itself,,,,,, right

Congress has absolutely zero percent of a chance of fixing this. They are the reason we are screwed to begin with. Not just the left right, middle, Republican, or Democrat,,,, all of them.....every single politician is to blame.



posted on Nov, 19 2012 @ 02:35 AM
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reply to post by bloodreviara
 


Earned Income Tax Credit is used by many poor people, with minimum wage jobs, or those making a bit above it. I agree that they are not making enough to survive already. I blame the Politicians for putting us in this position, and Americans for letting them do it.



posted on Nov, 19 2012 @ 02:36 AM
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Originally posted by liejunkie01


Congress has absolutely zero percent of a chance of fixing this. They are the reason we are screwed to begin with. Not just the left right, middle, Republican, or Democrat,,,, all of them.....every single politician is to blame.


I agree.




posted on Nov, 19 2012 @ 02:36 AM
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reply to post by sonnny1
 


And this is why I think that anyone with a law degree should be barred from holding office.

Many of the tax laws are enacted by lawyers who have written in loopholes that they will benifit from, but not the rest of us as we won't be able to afford a lawyer to exploit it.

The cost of hiring a lawyer would negate the saving for the average person.

Accountants can only do so much.



posted on Nov, 19 2012 @ 02:38 AM
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Originally posted by bloodreviara
one thing i would like to note here is who in gods name works
at mcdonalds and earns anywhere near that, i can understand
regional difference in pay and costs but where i live a fast food
worker brings home maybe MAYBE 15k a year if they are full time.

that's 40 hours every singe week all year without fail or vacation,
which most min wage jobs don't offer anyway, i don't see this
effecting most min wage jobs at all honestly.


40 hours a week at McDonalds who on earth gets that? Around 10 hours a week or 25 for management if you are lucky. Heaven forbid if you have a second job you need to work around because they WILL schedule you when ever they feel like it and if that schedule conflicts with another job and you don't show up, you are out the door. They have a giant stack of applicants waiting to replace you.

Single mom here, and I depend on that every year. I'll pretty much be screwed. That's when I stock up things like salt, sugar toilet paper and other non perishables to get me through the year. Looks like it'll be a return to the food-stamp line that I worked my butt off to get off of.

Oh, and if anyone one has a problem with me being a single mom, just so you know all 3 of my kids are by the same father whom I was married to and had a good paying job and could easily afford kids when I had them.
He up and decided one day after 12 years (7 years of marriage) he wasn't cut out for the family life. lost my job because I didn't have day care because he was with them when I was at work same with me when he was at work.
Added because there is so much single welfare mom bashing on this site.
edit on 19-11-2012 by calstorm because: (no reason given)



posted on Nov, 19 2012 @ 02:42 AM
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reply to post by calstorm
 


Thank you for coming to the thread, and giving your input. I think Millions of Americans will be feeling the pinch, the same way.



posted on Nov, 19 2012 @ 02:47 AM
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reply to post by TDawgRex
 


I hate Lawyers.




posted on Nov, 19 2012 @ 02:52 AM
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I think i may have been unclear here, i do not see how them cutting earned
income credit for those who make, as the example in the OP says, a couple
who earn 50+k will loose that earned income, but a worker at a minimum wage
job, even one who is lucky enough to get 40 hrs per week, which as a reply
stated is not likely, will not earn enough to actually loose any money from
this change, not minimum wage jobs anyway.

even a couple with kids both working min wage full time would only
bring home a max of 30k tops. so it seems to be a bit misleading
to assume min wage worker will loose that credit.



posted on Nov, 19 2012 @ 03:04 AM
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reply to post by sonnny1
 


Extracted from IRS website:



Preview of 2012 Tax Year Earned Income and adjusted gross income (AGI) must each be less than: $45,060 ($50,270 married filing jointly) with three or more qualifying children $41,952 ($47,162 married filing jointly) with two qualifying children $36,920 ($42,130 married filing jointly) with one qualifying child $13,980 ($19,190 married filing jointly) with no qualifying children Tax Year 2012 maximum credit: $5,891 with three or more qualifying children $5,236 with two qualifying children $3,169 with one qualifying child $475 with no qualifying children Investment income must be $3,200 or less for the year.



EITC is targeted for low income individuals/families. expunging any benefits provided by EITC would force those receiving its' benefits to strangle themselves with frugality. Its tough, but everyone needs to pitch in atm.



posted on Nov, 19 2012 @ 03:09 AM
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Originally posted by bloodreviara
so it seems to be a bit misleading
to assume min wage worker will loose that credit.


They will loose 500 per child.

Also From source.


That includes some earners who did not pay federal income tax in 2012 - the so called "47 percent." In some cases, higher marginal rates, changes to the Earned Income Credit, and a 50 percent reduction to the Child Tax Credit could force some families with zero dollars owed in 2012 to pay more than $2,500 next year.



posted on Nov, 19 2012 @ 03:12 AM
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Originally posted by asperetty
Its tough, but everyone needs to pitch in atm.


I don't see the Poor willing to do so. I don't see the middle class wanting to be poor.



We could save a lot of money, by shrinking Government, or Defense Budget, or getting a works program that fixes our infrastructure that's rates Nationally as a D-. Putting people back to work.



posted on Nov, 19 2012 @ 03:12 AM
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reply to post by asperetty
 


Can you tell me,

How we are supposed to get the economy rolling, if we are taking money out of the economy.

We will see who is strangling who when the real numbers come out.

The economy is the only way out of this debacle. Taking.g funds from the economy will only hurt us all in the long run. I do nit think this is the "fix" we need.

You are still talking about tens of millions of dollars and peoples jobs to boot.



posted on Nov, 19 2012 @ 03:40 AM
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Wow after reading and rereading the links you provide it does indeed seem
that the EIC will be cut somewhat for all pay levels, the only thing i find at all
to be a saving grace in that is at least you wont have to pay in unless you make
over roughly 41k for a small household.

This is a point i was going to post but did not, the EIC is used by many of my
friends and family to help ends meet, they use it for repairing a car or buying
a used one if the old car is shot, they use it for home repairs that are left
as is until tax time because they cannot save hardly any money on those income
levels, a good example is my brother, he is waiting for EIC to fix the heater in
his home, his wife and he both work and have 4 kids, its the same old story
as well, he and I worked at great jobs before the bubble and then were
laid off within a year of that bursting.

Anyway the point is i know at least 5 or 6 families personally that do things
this way, what do they do when the heater doesn't get fixed, the car is a goner
and they loose their jobs because they cant get to work, then they loose their
kids because they cant feed and keep them warm????? these aren't just
problem that will vanish....... im almost at a loss for what society expects
of this whole situation.......



posted on Nov, 19 2012 @ 08:22 AM
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reply to post by sonnny1
 


I am torn on the issue of Earned Income Credit. I do not benefit from this credit, but know many that do. Sometimes it makes me mad because we pay thousands of dollars in taxes and are fortunate if we get back a few hundred at tax time while many others pay in a few hundred in taxes but get back thousands each year. It feels completely unfair!

Then there is the flip side of the credit: needy people receive a lump sum of money that allows them to catch up on their bills, stock their pantries, fix their cars, buy the kids new clothes, etc. They would not be able to do these things without the lump sum they receive from the Earned Income Credit.

I wouldn't mind the whole situation if all people who get EIC spent the money on necessities or to "catch up", but it really burns my butt when I see people getting huge checks and spending them to buy wide screen TVs and go to the casino. Last year someone I know spent several hundred on a new guitar amp out of their EIC money when they really needed to fix their car.

It's frustrating to say the least, but we need to keep EIC as there are many who need it just to survive.





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