I know some people who get 10,000 a year from EIC. That wouldn't get you a mansion, but it would be enough to maintain a decent house in the city of Rochester.
File this under, "system working as intended."
70% of this country's economy is consumer spending. I don't like it, but it is. The EITC is basically a subsidy to the "consumer spending" sector (I realize that's not an actual defined sector, but you know what I mean). It's not like someone making $9 an hour needs just a few years to finish saving for a house. The people who do get a whole other raft of subsidies.
Last edited by Diff-chan; 03 Mar 2012 at 10:44 AM.
I know some people who get 10,000 a year from EIC. That wouldn't get you a mansion, but it would be enough to maintain a decent house in the city of Rochester.
First of all, Josh has a name.
Second, you're wrong. Tax credits are deducted from your taxable income. They come out of what you have paid; what's taken out of your check each week. Nobody pays negative taxes. They can sometimes get a refund from taxes withheld outside of the current year, but yeah, it's still shit they paid.
If you get a $10K EITC, and you make $40,000, it just means you get taxed as if you made $30,000 and they give you money back for the difference in rate, not that someone cuts you a check for $10,000.
This is like those people who think when companies "write something off" they get the money back. It's just that they don't have to pay taxes on that income.
Last edited by Frogacuda; 03 Mar 2012 at 12:28 PM.
For what it's worth I've been successfully trolling you with that for years.
you really are full of shit sometimes. Everyone is.
Last edited by Josh; 03 Mar 2012 at 12:31 PM.
It's not hard to do.
Then there is some fraud going on, because the max credit is not even $6000.
http://taxes.about.com/od/deductions...rnedincome.htm
My point still stands, though.
Fun fact: The EITC was modeled on a proposal by none other than libertarian douche Milton Friedman.
Omg. I have a friend who makes 16,000 a year and claims 3 kids. He has set his deductions for his weekly paycheck so that almost no tax is taken out and only pays the social security tax, which is nominal. This year he had a federal refund of 7700 and a state refund of 2200.
Another friend of mine made 7000 last year. He paid less than a 1000 the whole year for taxes He claimed his sisters kid and got 4500 back between federal and state.
You know some poor ass fools
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