The Republican Plan to Tax the Poor

[ProSense]

The Republican Plan to Tax the Poor

—By Josh Harkinson

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According to the watchdog group Citizens for Tax Justice, the GOP's tax plan would allow the expiration of tax breaks worth a total of $11.1 billion for 13 million working families. (Democrats want to keep those tax breaks in place.) That's enough money to make up for 40 percent of the value of the GOP's proposed tax cuts for the rich.

Here's a rundown of the GOP's proposed tax increases, and what they'll cost working families:

Child Tax Credit: A tax deduction for families with children
GOP proposal: End a portion of the credit for families making between $3,000 and $13,300
Savings to federal government: $7.6 billion annually
Tax increase for average family: $854 annually

Earned Income Tax Credit: A tax credit for people who work but have low wages
GOP proposal: Reduce EITC for some married couples (i.e., bring back the "marriage penalty&quot and for families with three or more children
Savings to federal government: $3.4 billion annually
Tax increase for average family: $530 annually

According to CTJ, virtually all of these tax increases would apply to families making less than $50,000—people for whom a few hundred dollars can make a huge difference. Unfortunately for them, the media is focused instead on how Obama's tax increases on incomes above $250,000 will make life intolerable for rich people.

http://www.motherjones.com/mojo/2012/07/republican-plan-tax-poor

[ananda]

1. This kind of thing hurts my soul.

nt

[Trillo]

2. It's nice to see some discussion of poverty.

NT

[dkf]

3. Funny how Bush never got credit for these tax cuts.

Well we've demonized them enough that they are all going to have to go sooner or later.

[hfojvt]

4. I'd like to get rid of the EITC for the 3rd child myself

I see no reason for the government to encourage or subsidize larger families.

Back in 2001, the EIC for a family making $30,000 who had two children was $452 and there was no EIC for people making over $32,121. In 2011, the EIC for a married couple with 3 children making $40,000 a year is $1,906. Thanks to the accursed child tax credit, that couple already pays ZERO income taxes. Plus they get that EIC as a refund, and maybe even some of the accursed child tax credit is refundable too. Meanwhile a single childless person making minimum wage $14,500 a year PAYS $503 in income taxes - gets to subsidize that couple with almost 3 times his/her income.