Post: Earned Income credit and welfare

Posted by Renee on 2/09/11
I hope everyone who reads this will contact our wonderful
government and get this fixed.
In my opinion households who are on welfare should not be
allowed to take earned income credit.
Here is an example: in this household there are 5 people, 3
children 2 adults, one person did work and made 14k for the
year. had $996 witheld for federal taxes. They recieved 6k
earned income credit along with the rest of their tax
credits bringing their refund to 9k. Now, for the entire
year they are on food stamps, medicade, and live in housing
paid for by welfare. If you add up all the costs of their
food stamps housing ect. they make more money than most tax
payers who make over the earned income credit amount and
that money is provided by the government already. If you
think about it, most people who are at or below poverty
level are eligible for the credit, but they are also
eligible for welfare benefits as well, so what do they
recieve? free food, free housing, and they also get help
with their utilities, and now they get free cell phones,
all medical and prescriptions paid for along with free
childcare. Then at the end of the year they get free money
from the irs to boot. In the meantime I'm forking out well
over 10k in taxes and struggling to pay my bills, and these
people get to go buy new TV's Stereos ect. because they
don't have to worry about food or paying bills.
Can you imagine how much money the government would save by
adding one simple rule, if a household is recieving welfare
benefits they should not be able to take the credit. Let me
add these people will not suffer from this because their
tax liablity will still be zero and they will still recieve
the child tax credits, so for the example I used above if
the earned income credit was not taken they would still
recieve a refund of almost 3k.
By the irs putting this rule into affect they could also
pass along some tax breaks to more working class or lower
our tax liability period.
Please read this entire post carefully im not wanting to
penalize these people, I just think the amount of
government funds they are recieving is excessive and this
needs to be fixed and making this rule will help.
Simple...if a household is on welfare they cannot take
earned income credit. period.
If you agree please contact the IRS ,or whoever you need to
to have this changed, this needs to be looked into.
Posts on this thread, including this one
- Earned Income credit and welfare, 2/09/11, by Renee.