The US Senate yesterday passed a "tax credit" for low-income families. Under the provision, low-income, working families will get an additional $400 off of their Federal Income Tax liability for each child in their household. Sounds good, right?
You know how I feel about taxes, so you think I would be for it. There's just one problem... it's not a tax credit. It's welfare in disguise.
I fully support the tax credits and reductions FOR INDIVIDUALS AND FAMILIES THAT ACTUALLY PAY TAXES. This bill proposes to give $400 per child to families that, after exemptions and deductions, have a $0 tax liability. So... these people are not getting their own money (that they paid in income taxes through Federal payroll withholding) back. They're getting OUR MONEY.
Now, if the Congress wants to pass a welfare grant to working families... fine. I'm against it, but at least CALL IT WHAT IT IS. Watching the evening news, you are never told the truth about this and it makes those who oppose the bill appear to be keeping these struggling, working families from THEIR money... when it's not their money at all.
This couldn't be intentional on the media's part... could it?
It seems so simple to me. If individuals or families that have children actually pay federal income taxes, they should get a credit up to the amount that they actually pay.