A thought on the earned income tax credit

[jpbollma]

It seems to me that many "Reagan" Democrats liked Reagan because he was against more government programs but he supported help to the "working poor" through mechanisms like the earned income tax credit. Now many in the GOP hate the Earned Income Tax Credit. The EITC has helped many and it seems as though the Democrats have stolen this as their own exclusively. Are ideas like this part of Obama's path to victory against the Tea Party GOP?? I ask this because the payroll tax cut seems like another issue Obama can run on...

[WCGreen]

1. As a tax preparer, I can tell you that the EITC credit has been a great

success in helping people at the lower end of the scale survive.

It also helps to keep costs down for employers of those at the lower level as the credit is subsidy for them to hire people at a base rate. the original thrust was to help small business hire more people.

Unfortunately, WalMart has been using the credit as a way of keeping the wages paid to mainly women who have children down. Read Nickle and Dimmed to see the result of that credit up close and personal.

It also encouraged the huge number of predatory tax preparers who set up shop in poor neighborhoods and charge the people who come into their office huge interest just to direct a good chunk of that credit into the pockets of those who exploit the poor.

[jpbollma]

2. what walmart and

these tax representatives do disgusts me then. I can only speak to my personal experience. I had been making 40k a yr, lost my job then for one yr only made 12k ( I then lucked out and got another living wage job) but in the year I was low income, I got the credit. It was a tremendous help to me. It makes me sad that vultures feed on the poor when they get something meant to help them.

[WCGreen]

3. It's a good thing for the individuals...

and I always look to get people that credit if I can, but the fall out has been bad, in some cases.

I was trying to get a friend of mine who is fluent in Spanish, to open up a place in the poorer neighborhoods and go head to head with the predatory people. My health is failing so I can't.

[jpbollma]

4. I now work in Human Resources

and United Way had a program in the area where they would teach people to do taxes, then we would volunteer our time. Unfortunately, they wouldn't allow me to work on Saturdays for the program or I would have done it. If you happen to know of any programs where I can help the poor and disabled prepare their taxes on Saturdays I would love to help. I work 2 human resource jobs ( a co-worker is out on leave) 8-6 5 days a week.. and I take 12 college credits...but I still have Saturdays.

[WCGreen]

5. Senior Centers....

[zalinda]

6. I don't know your view on churches

but, there are many in poor communities who are really stepping in and helping people. One place to start is to find food banks in your area and talk to someone in one of those centers. You may be able to set something up with them.

zalinda

[hfojvt]

7. why do you think he can run on the payroll tax cut?

Because poor people are stupid? http://journals.democraticunderground.com/hfojvt/160

[jpbollma]

8. well

I am doing service for a senior who needs their house repainted this saturday, but I will def try the senior centers and churches ( I have nothing against the religious even though I am not). And as for the other question. Perhaps I don't understand the payroll cut, but I was under the impression that they would take funds from the general fund to cover the tax cut.

[hfojvt]

9. it's not about where the money is coming from

it's about WHO it is going to. As I wrote in my journal


"12.1% of the payroll tax cut goes to those in the bottom 40%
26.7% of the payroll tax cut goes to those in the top 10%

27.1% goes to those in the bottom 60%
46.4% goes to those in the top 20%"

A tax cut that gives $48 billion to the richest 10%
and only gives $48.8 billion to the bottom 60%

does not seem like a very good deal for the bottom 60%. It seems like a much better deal for the top 10%

For another comparison OWS style - the top 1% gets 3% of the payroll tax cut. Almost the same amount as the whole bottom 20% which only gets 3.8% of the tax cut.

The bottom 60% should not support a payroll tax cut.