Tax credit proposal has a bipartisan chance
Source: ASSOCIATED PRESS
WASHINGTON (AP) — In his State of the Union address, President Barack Obama gave a shout out to House Speaker John Boehner, hailing him as the successful son of a saloon keeper. It brought the house down. Less noticed, but perhaps more significant, was his hat tip to Sen. Marco Rubio, singling out the Florida Republican’s support for expanding tax benefits for low-income workers.
Seeking bipartisan achievement in a divided Congress, Obama may find common ground with his proposal to expand the earned-income tax credit to childless workers, broadening benefits that now mainly go to low-income working parents. The program has support across a broad spectrum of policy analysts, prompting both liberal and conservative economists to embrace it.
Provided as a tax refund, the credit is intended to be an incentive to find work and to help offset Social Security and Medicare payroll taxes. Though childless workers are eligible, the largest part of the credit benefits families.
The idea of expanding the program was the only new legislative proposal in Obama’s State of the Union.
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Read more: http://www.salon.com/2014/01/29/tax_credit_proposal_has_a_bipartisan_chance/
