Scrap the Earned Income Tax Credit
Re: "A lifeline for low-income families" (Boulder Daily Camera, Insight, Feb. 20): http://www.dailycamera.com/bdc/insight/article/0,1713,BDC_2494_3559532,00.html The state and the federal governments should eliminate the Earned Income Tax Credit. While described as a tax credit, EITC is simply a covert expansion of welfare. The name implies a credit against taxes otherwise due. In reality, EITC gives "refunds" to people who don't pay any income tax. The program gives greater benefits to unmarried people living together than to married couples. More importantly the program effectively penalizes a worker who improves his or her skills enough to get a raise beyond about $7 per hour. Not only is the EITC simply a transfer program, but it includes important and socially destructive incentives, i.e. to live and have children outside marriage and not to improve one's working skills. Instead of being "beefed up", EITC should be scrapped and the welfare and Social Security systems modified to achieve the intended goals.
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