Obama's tax cut for 95% of Americans

iVillage Member
Registered: 08-17-2005
Obama's tax cut for 95% of Americans
412
Mon, 10-13-2008 - 11:24am

I know it is endlessly brought up how Obama is going to cut taxes for 95% of working families.

Susan

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iVillage Member
Registered: 07-03-2008
Mon, 10-13-2008 - 4:50pm
How is my statement incorrect? You just said where it's getting it's money from.
iVillage Member
Registered: 02-06-2003
Mon, 10-13-2008 - 5:06pm

But Obama's proposed tax cut is for FEDERAL income taxes.

iVillage Member
Registered: 10-02-2008
Mon, 10-13-2008 - 5:09pm

"How is my statement incorrect? You just said where it's getting it's money from"


KAREN

iVillage Member
Registered: 10-02-2008
Mon, 10-13-2008 - 5:15pm

"For those who are elligiable for the earned income tax credit, they not only get back what they paid into the federal taxes, but get back more than they paid in.

KAREN

iVillage Member
Registered: 09-11-2007
Mon, 10-13-2008 - 5:29pm
Earned Income Credit is not just for those who don't work. It is for those who make very little as well. I qualified for it one year...after divorcing my ex...on my own with a small child. I assure you I worked very hard..and I never took a dime of welfare of any sort. Before you judge who is getting EIC...perhaps you should know not only the unemployed or welfare recipients qualify for it.
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iVillage Member
Registered: 09-15-2008
Mon, 10-13-2008 - 5:39pm

i'm sure no one is suprised to hear me say that i have no problem with obama's tax credits. i believe the credits will be good for the economy. i believe it wll help people be able to start spending again. and i think credits for things like college tuition and children are good investments for our country.


the one thing i did take issue with is :


"Some families with an income of $40,000 could lose up to 40 cents in vanishing credits for every additional dollar earned from working overtime or taking a new job. As public policy, this is contradictory. The tax credits are sold in the name of "making work pay," but in practice they can be a disincentive to working harder, especially if you're a lower-income couple getting raises of $1,000 or $2,000 a year"


i know a few people who have not taken high payer jobs right now because they dont want to lose assistance. i feel like there needs to be more of a balance between helping those who need it, while not discouraging people from improving their own financial situation

iVillage Member
Registered: 01-31-2001
Mon, 10-13-2008 - 5:39pm

Actually, I believe you HAVE to work to get EIC.. it is for people who earn a wage, but earn below a certain cut off point (we received it for a while when DH was in the military). Also, EIC is not the only credit people can take that allow them to receive back more than they paid in.

However, it is true that there are many people who pay no taxes at all (and are included in that 95%). Our state does not have state income tax and my husband does not pay social security tax either as his employer opted out of SS back when it was still possible to do so. We have always received back more than we paid in.

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VJ-Sig
iVillage Member
Registered: 09-11-2007
Mon, 10-13-2008 - 5:48pm
Hehe.....tax laws and codes are not my expertice...as I only qualified for EIC one year...I was unaware of how it really worked. All I know is that I was working..not on welfare..and not asking for anything from anyone. Thank you for sharing. I am sure people get back more than what they put in....but the notion that all who do are lazy or not working hard really annoys me greatly. ( not saying you said this...jsut observing generalities)
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iVillage Member
Registered: 01-31-2001
Mon, 10-13-2008 - 6:00pm
Yep, I think we agree on this point. There are people out there that take advantage of the system and don't want to work, but I think that just because people get back all the tax dollars they paid in doesn't mean they aren't contributing members of society. I think the earned income credit rewards the people that ARE trying to work hard and take care of themselves (and their families). I think the problem lies in the terminology- Obama's "tax cut" is really an economic stimulus package for many families because it's impossible to cut taxes for those who don't pay any. I'm much less concerned with the cuts on the bottom than I am with the raises on the top end. I feel that the hit to small businesses (the ones who actually employ a good portion of American workers) is too big a risk in the current economy.
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VJ-Sig
iVillage Member
Registered: 04-09-2007
Mon, 10-13-2008 - 6:34pm
I kind of think of this method of returning everything that was put into the system as a gift to the states and local governments.

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