Report: Hurricane tax aid does more for wealthier survivors

[sabra]

http://www.nola.com/newsflash/weather/index.ssf?/base/news-19/112724904145170.xml&storylist=hurricane

Report: Hurricane tax aid does more for wealthier survivors

The Associated Press

WASHINGTON (AP) — Tax breaks designed to help Hurricane Katrina victims get their hands on needed cash could do more for higher income survivors than for the neediest, a congressional report says.

The Congressional Research Service, an office that provides nonpartisan legislative analysis to lawmakers, pointed to several items in virtually identical bills that passed in the House and Senate last week.

One helps hurricane victims get access to their savings by waiving penalties imposed on taxpayers who tap into their retirement savings accounts before retirement. Others let taxpayers write off more of their destroyed property, and erase taxes regularly imposed when a debt, like a mortgage, is forgiven.

The report says lower income survivors are less likely to have retirement accounts like 401(k)s and IRAs to tap into for recovery. Because many lower income individuals and families pay little tax, assistance efforts that lower their taxes may do little good, the report said.

[CottonBear]

1. The working poor don't have retirement accounts. That'a why they need SS.

The Republicans are such bastards. They're gonna burn in hell.

[freedom_to_read]

2. Gee they needed to do a study to find that out?

n/t

[Gelliebeans]

3. I knew this would happen

as a long time tax preparer, I have seen the devastation created by tax breaks for the wealthy when people who at poverty level are lucky if they fall into the EIC credit. If the federal government REALLY wanted to help those people affected they would raise the amount of the earned income credit and allow for people on permanent disability to be eligible for the credit during the hurricane year affected. This just drives me nuts.

[redqueen]

5. America: Of the poeple, by the people, and for the RICH.

:mad:

[Gelliebeans]

7. Don't you just want to scream?

AAAAAAAAAAAAAAAAAAA somehow I just don't feel better.

[elehhhhna]

4. Who's gong to "forgive" mortgage debt, other than

big co's who "loan" $ to their top execs, then never get repaid anyway? I don't hear any reports of those nice mort. co's forgiving debt, do you?

[BrightKnight]

6. Tax free reconstruction jobs for residents would help. - n/t

[hughee99]

8. So people who have saved money

are going to avoid the taxes on taking it out and using it for recovery. Those who haven't saved money, or weren't able to, will not benefit from this, nor will they be harmed as far as I can see. The taxes imposed on a forgiven debt, like a forgiven mortgage, will be allowed as write-offs, so that people do not have to pay taxes on a forgiven debt for a house that was wiped out. Can someone help me, I fail to see the issue here.

[RevolutionStartsNow]

9. Well, the action taken may not directly hurt the poor

but it certainly doesn't HELP them any. The article is talking about how this highly-touted "tax relief" is really most beneficial to the wealthier hurricane victims.

I have no problem with helping out the victims who have savings, by giving them a break on the normal penalities, but we should ALSO be doing something for those who cannot benefit from this tax break.

[hughee99]

10. I agree

but was this an exhaustive list of what the government plans to do? Provided actions are also taken to help the poor, I have no issues with this, in and of itself.

[RevolutionStartsNow]

11. Nor do I

I would have to see what their plan is to help people who can't benefit from this particular tax break. If they have one, great, but I think we're all particularly sensitive here to these "false tax breaks" that are paraded out as helping everyone but really only help some of the people.

On Edit:
I read the rest of the article, and while these proposed bills do throw a bone to those who qualify for the EIC, even that will only help some people, as many people are too poor for even that. It does go on to say, however, that Congress is working on bills to help release more welfare money (ah, Rush is going to LOVE that!), as well as to provide easier access to Medicaid and Unemployment funds. Let's wait and see what they do.

[sandnsea]

14. Protect the rich, blame the poor

Then pretend the rich aren't really rich, and run a campaign on how unfair it is that their taxes are so high on their second or third home, and what's the big deal that they get yet another tax break.

And be sure and label that $2,000 per family "handout" the return to a big government FDR welfare state.

[hughee99]

16. Seriously though...

This is a tax break that will benefit those who have only 1 house and a 401k that the could take money out of to help meet their immediate needs. A vast majority of the people who take advantage of this won't be "the rich". I'm sure a few wealthy people will find a way to take advantage of it, but that doesn't mean that it's not a good idea.

[killbotfactory]

12. Big fucking surprise right thurrr

George Bush doesn't care about anybody, except the rich.

[Megahurtz]

13. Just one more sick piece of information

that has me angry at this greedy wealthy-loving Administration.:grr:

[Bryn]

15. How Can This be Legal??

The rest of us should do something about this insane law ... FOR THE RICH. My Ass!