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One thing I'll give the NAACP credit for in regards to Moral Mondays is one of their posters does a good job at explaining what they are mad about. One of those items is the Earned Income Tax Credit.
Basically this is a credit that can reduce income tax for low and moderate income families but the kicker is, if it goes below $0 due in taxes you still get to take the rest. It's not a deduction, it's a credit. It could even mean that if you aren't due a refund you'll still get one.
This confuses me so if someone can explain it better please do.
While the amount per person in North Carolina that gets the state to kick in on top of federal isn't much, there's 900,000 people that have qualified for it meaning $105 million dollars in 2011.
It appears that the state part is an added 5%. Qualify for $100 from the feds you get $105 total.
The House will pass their version of a tax bill on Monday. With it will come a doubling in personal deduction and 2.5 increase for child credit. The overall tax rates will be flattened to one which will be slightly lower than the lowest one today.
While that may help more people it isn't going to put cash in to someones pocket on top of whatever their refund if any would have been.
It appears that this credit was thought of as a poverty reducer and possibly to make up for a stagnant minimum wage. Sales tax on other things like electricity and labor where there wasn't before are also coming in to play.
This means if you are used to getting this credit you're going to lose it and your electric bill is going to go up thanks to the state even if Duke doesn't do a thing.
The Earned Income Tax Credit is an incentive to get people to work, even in less than ideal jobs. It's been championed by such "liberals" as Ronald Reagan ("perhaps the biggest antipoverty program in our history"). Before him, Nixon and others were talking about a similar style thing called a wage floor. This combined with the sales tax increase is making working at low wage jobs less and less appealing. This will have the perverse effect of making welfare more profitable than work.
Seriously? Do the math for me. It won't be any more of a gravy train than the new U.I. program.
The math is about getting more than just SSI welfare to float a poor families budget.
Having a job... even a crappy low pay job... is better than not having one. Right?
But the job... especially the crappy low pay jobs... won't pay enough to support that family budget.
The math is about getting more than just SSI welfare to float a poor families budget.
Having a job... even a crappy low pay job... is better than not having one. Right?
But the job... especially the crappy low pay jobs... won't pay enough to support that family budget.
That's fine and dandy. Very general statements. You said not working would be more appealing. You said welfare would become more profitable than work.
I say that's nuts. So, don't try to learn me general stuff like having a job is good. Stick with the thread subject.
SSI has nothing to do with this discussion. If you believe more people are going to become blind and disabled so they can get back at the man for taking away this tax credit then I don't care. That's not what this thread is about.
One thing I'll give the NAACP credit for in regards to Moral Mondays is one of their posters does a good job at explaining what they are mad about. One of those items is the Earned Income Tax Credit.
Basically this is a credit that can reduce income tax for low and moderate income families but the kicker is, if it goes below $0 due in taxes you still get to take the rest. It's not a deduction, it's a credit. It could even mean that if you aren't due a refund you'll still get one.
This confuses me so if someone can explain it better please do.
While the amount per person in North Carolina that gets the state to kick in on top of federal isn't much, there's 900,000 people that have qualified for it meaning $105 million dollars in 2011.
It appears that the state part is an added 5%. Qualify for $100 from the feds you get $105 total.
The House will pass their version of a tax bill on Monday. With it will come a doubling in personal deduction and 2.5 increase for child credit. The overall tax rates will be flattened to one which will be slightly lower than the lowest one today.
While that may help more people it isn't going to put cash in to someones pocket on top of whatever their refund if any would have been.
It appears that this credit was thought of as a poverty reducer and possibly to make up for a stagnant minimum wage. Sales tax on other things like electricity and labor where there wasn't before are also coming in to play.
This means if you are used to getting this credit you're going to lose it and your electric bill is going to go up thanks to the state even if Duke doesn't do a thing.
The average EITC credit in NC last year was about $2300, so it's more like going from $115 to $103.50 in the state match for the year, and losing that $115 when the full cut goes into effect. It doesn't seem like much, but like you mentioned, the bump in taxes on services like utilities in aggregate pushes up the tax burden on the poor moreso than the wealthy, who'll see up to tens of thousands in tax breaks according to the House budget.
One would think this is where the flat tax advocates would be hopping mad, but alas.
Seriously? Do the math for me. It won't be any more of a gravy train than the new U.I. program.
"A series of studies have been conducted in the past few years on the EITC's effects on work behavior. These studies have consistently found that the EITC has substantial positive effects in inducing single parents to go to work. One of the most important of these studies finds that the proportion of single mothers who are in the labor force rose sharply between 1984 and 1996 and that the EITC expansions instituted during this period are responsible for more than half of this increase."
"
This shift in the structure of cash assist
ance for low-income families, away from
welfare and toward tax-based assistance, is
the outcome of a longstanding criticism that
traditional welfare programs generate adverse incentives for work and family.
Importantly, the policy changes to welfar
e and the EITC in the 1990s both provided
incentives (financial and otherwise) for
single mothers with children to increase
employment. Indeed, employment rates of
single mothers with children increased 11
percentage points over the past twenty years, from 0.73 in 1987 to 0.84 in 2006. Even
more striking is the 16 percentage point change that occurred between 1992 and 1999
(from 0.72 to 0.88). These gains were even
larger for single mothers without a high school diploma where employment rates increased by 20 per
centage points between 1992 and 1999. No other group of women (singl
e women without children, married women
with or without children) or men experienced such a dramatic increase in employment. In
this paper, I describe these important policies, present trends in
employment for single mothers, and summarize what is known about
how the changes in welfare and the EITC have affected employment."
"A series of studies have been conducted in the past few years on the EITC's effects on work behavior. These studies have consistently found that the EITC has substantial positive effects in inducing single parents to go to work. One of the most important of these studies finds that the proportion of single mothers who are in the labor force rose sharply between 1984 and 1996 and that the EITC expansions instituted during this period are responsible for more than half of this increase."
Well that's interesting and maybe at some point I'll compare state programs but am I wrong when I say that the average TAMP payout is about $300 per month and you have to be looking for work in order to get that? Plus 24 months is the limit before having to take a break and 60 months is the federal limit.
That plus some food stamps doesn't seem to be enough to want to go that route. Is it a lot more in other states or am I missing something?
Doesn't look like there's a lot of room to make the choice long term. The G.A. obviously thinks this will work with U.I. too though I have more doubt there.
The average EITC credit in NC last year was about $2300, so it's more like going from $115 to $103.50 in the state match for the year, and losing that $115 when the full cut goes into effect. It doesn't seem like much, but like you mentioned, the bump in taxes on services like utilities in aggregate pushes up the tax burden on the poor moreso than the wealthy, who'll see up to tens of thousands in tax breaks according to the House budget.
One would think this is where the flat tax advocates would be hopping mad, but alas.
Where are the tens of thousands in breaks? I mean yeah, if you're that wealthy any savings is going to mushroom on a percentage basis. Maybe after Monday we can have a budget thread? Of course reports are the distance with the senate is pretty wide.
I guess what I was hoping for is to hear some actual opinions here and see how it will affect members of the forum.
RALEIGH — The median North Carolina family would get a modest tax break while wealthy taxpayers may see a significant cut under a sweeping bill primed for a landmark House vote Friday.
A married couple with two children making $40,000 a year would get an estimated $40 tax break when the legislation is fully implemented, according to a new legislative analysis. If the same family earned $250,000 a year, it would see a roughly $1,700 break. The tax cut increases to at least $12,500 if the family makes $1 million.
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