Economic Tax incentive - does anyone else see this as a problem

Question

Economic Tax incentive - does anyone else see this as a problem

Ok am I the only one out here who is really aggravated -

I will not be receiving one of these wonderful incentive refunds of $600 because I had gross income over $75K (on which I actually paid $21k in net income tax). But according to the AP today the IRS is trying to find people who had NO income or below the poverty level income and paid NO income tax so that they can send them their $600 TAX incentive refund checks.

Excuse me you are going to use my $21k to pay tax incentives to people who paid no taxes - while you have decided that I do not deserve that same incentive.

Am I the only one that thinks this is a little screwy - or that some US taxpayers are getting screwed?

Answer 1

If you find a problem with this you should learn a little about EIC.  People with little or no income liability getting thousands each and every year.  May be you really don't want to know about the EIC.  Forget I mentioned it.

Answer 2

Heh, heh, I like the point made about the EITC.

Answer 3

The people with real low incomes and have kids get the child tax credits, additional child credits, earned income credits. Someone who made 12k last year can get a 5k refund and they didnt even put that much in.

Answer 4

Yes it's screwy.  As originally proposed it was to be a REBATE, but by the time our nanny Congress got done with it, it had changed a lot from that.  

Your facts aren't exactly right - someone with NO income, or with qualifying income below $3000, who paid NO tax, isn't eligible.  And people with tax liability under $600 aren't eligible for $600, just $300.  But in principle, you have a point - it's just the details.

I have somewhat mixed feelings on this.  I do taxes for mostly seniors in a volunteer program, and see lots of people living on litle beyond social security, so seeing them get an extra $300 was kind of nice.    But I can sure see how you feel that you got screwed - and I have to agree that you did.

Answer 5

What you are saying is correct, and I totally agree with you.  But, you are using one small example to throw the whole system off.  And I do have to admit, you are totally correct because what they are doing is pissing alot of people off, me included.  It's totally not fair.  But, I do have to say that we get benefits that some people dont use.   Some people use WIC, but not all.  Some get tax breaks/incentives to buy luxury cars, but others do not.  Some get free health care, and some pay for it through their employer.  And there will be some things that we pay for, but dont get to use or benefit from.  One of such is the $600 tax incentive.  It is true that the richer people have been paying for alot of the lower income households' needs.  And it has been this way for a very long time.  I dont think all of it is fair.  As a matter of fact, I think that the $600 dollar tax incentive is by far the most unfair thing I have ever heard.  But, "WHAT CAN WE DO?"  Bush has completely destroyed the US economy with his decision and its really not fair to all of us.  The economy didnt just become this way.  It was through his careful planning that we got the economy that we got.  And then when there is nothing we can do to make it worse, because it's at its all time low, he tries to fix it with a band aid.  $600 dollars is going to fix the economy?  give me a break.....what a childish solution to a nationwide/worldwide problem.....It didnt work the first time so why should it work the second time around?