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Yavin4

(35,421 posts)
Wed Sep 19, 2012, 05:04 PM Sep 2012

The Earned Income Tax Credit

There are two primary reasons why a lot of Americans do not pay Federal Income taxes:

1. High rates of unemployment which depresses wages. Thus, many people simply don't make enough to have to pay federal taxes

2. The Earned Income Tax Credit, a Republican idea that was a reward for work over welfare. You would enhance the piss-poor wages with small subsidies for chidren. This was deemed preferrable to raising the minimum wage.


Now, these Republican assholes are complaining that the poor don't pay enough in income taxes.


Originally enacted in 1975, the Earned Income Tax Credit was borne out of welfare reform efforts of the early 1970s. The Tax Reduction Act of 1975 originally added the credit to the Internal Revenue Code. After expanding during the years, the credit is now one of the principal anti-poverty programs for working families in the federal budget.


The Taxpayer Relief Act of 1997 included provisions to improve compliance. In 2001 the Economic Growth and Tax Relief and Reconciliation Act promoted simplification and provided new marriage penalty relief.




In 1997 and 2001, Republicans controlled congress.

In sum, if you want Americans to pay more in federal income taxes, pay them more money.
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WCGreen

(45,558 posts)
1. Actually the earned income credit was partially designed for employers to keep wages
Wed Sep 19, 2012, 05:09 PM
Sep 2012

from creeping up at the lower level in order to help small business owners and lower end manufacturing concerns.

Just wanted to point that out.

maxsolomon

(33,240 posts)
3. expanded under ford, reagan, bush the lesser
Wed Sep 19, 2012, 05:20 PM
Sep 2012

and now they are trying to hang it around obama's neck. if it's such a problem, WHY DID YOU VOTE FOR IT?

WCGreen

(45,558 posts)
4. They used it as part of a compromize to keep or lower upper tax breaks....
Wed Sep 19, 2012, 05:27 PM
Sep 2012

And now, a lot of them want to now get rid of it...

 

kestrel91316

(51,666 posts)
6. The NERVE of those working poor! Don't they understand that they have a duty to
Wed Sep 19, 2012, 06:25 PM
Sep 2012

live in back alleys and under bridges if they don't make enough to afford housing?

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