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Warren Buffett proposes raising EIC on taxes

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  • Warren Buffett proposes raising EIC on taxes

    The billionaire proposes the best way to help the poor is to raise the Earned Income Credit (EIC) on tax returns.

    http://www.msn.com/en-us/money/marke...lo?ocid=SMSDHP

    I think he's wrong. The EIC is a disincentive to work. If you are a worker and know that you'd get several thousand "free" dollars back on your taxes that you didn't pay in so long as you don't exceed a certain dollar value of income what incentive do you have to work towards a higher wage job if that job:

    A. Will reduce or eliminate your EIC amount more than the additional money you make?

    B. Force you to possibly put in more hours working to get it when sitting on your @$$ will get you government welfare in the form of EIC?

    Because, when you get right down to it, EIC is an alternative form of welfare from the government. It is a handout not cash you earned.

  • #2
    Lots of people out there (like moi) did not earn income to qualify for a EIC. Perhaps the boundaries could be adjusted for those who did qualify?

    Pruitt
    Pruitt, you are truly an expert! Kelt06

    Have you been struck by the jawbone of an ASS lately?

    by Khepesh "This is the logic of Pruitt"

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    • #3
      What it is, is a way to try to make low-wage jobs more acceptable.

      That does not bode well in the long term, if you think about it.
      Any man can hold his place when the bands play and women throw flowers; it is when the enemy presses close and metal shears through the ranks that one can acertain which are soldiers, and which are not.

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      • #4
        Originally posted by Arnold J Rimmer View Post
        What it is, is a way to try to make low-wage jobs more acceptable.

        That does not bode well in the long term, if you think about it.
        The problem is that it encourages you to stay in a lower wage job to get the "free" money. I've heard of people that even work fewer hours to ensure they max out the EIC rather than work more and have it reduced.

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        • #5
          People who draw social security also can earn money that cuts back on their Social Security check. Years ago I had just got custody of my youngest daughter back and she had to get medical coverage through a SSI program. I had a ceiling that would cut her off if I made more than a certain amount. This did not end up well. My work did not understand that I could not make over a certain amount in a quarter. Several times I had to find extra money to pay for her VERY expensive seizure medicine! It was always a lot more than what I had "over earned". After BabyGirl had lived with me long enough, I was able to get her back on the Louisiana program that did not tie her benefit to my earnings!

          Governor Kathleen Blanco helped us get back in. No matter what else she screwed up, she will always have my gratitude and respect for her help.

          Pruitt
          Pruitt, you are truly an expert! Kelt06

          Have you been struck by the jawbone of an ASS lately?

          by Khepesh "This is the logic of Pruitt"

          Comment

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