This one is a bit involved, folks, so follow me on this one. It has a big finish.
- to date, a total of 155,798,000 tax returns were filed for 2018 tax year for a population of 330 million people and
- an estimated 77,900 of the above tax filers did NOT pay taxes with
- approximately 20% or more of the above NON-TAX PAYERS ( 15,600) got cash payments from the taxes paid by those few actually paying taxes, called an Earned Income Tax Credit, if you can believe it. It is THIS EITC that has so many illegals filing taxes. They file for this benefit plus refunds of any taxes paid.
These are the personal exemptions for the 2019 tax year which reduces the amount of income used to calculate your tax rate.
The deductions below require an itemized tax return. They also reduce the amount of income used to calculate the tax rate.
IF you are a low income earner, you can file an EITC form to claim an Earned Income Tax Refund. The chart below gives you the scale of refunds available to those who qualify.
At one time, those who received Medicaid and other benefits could not file for EITC refunds; however, documentation for EITC does not prohibit such double benefits today. So the Earned Income Tax Credit does not consider the value of the Medicaid cards, Food Stamps, or low income housing, for example. Those benefits alone total conservatively at least $23,352. Additional benefits like WIC, school lunch, head start, English as a second language and programs for the disabled and mentally ill are not included, nor are any state benefits. So when you put all of these amounts together into a big picture, this is what you see. We only used these three benefits to illustrate our point: low income housing, food stamps and Medicaid.
Sources: https://www.irstaxapp.com/tax-brackets-for-2019/ https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit https://www.justfacts.com/news_poorest_americans_richer_than_europe. This graph does not consider the value to individuals and couples of the government subsidies in housing projects.
The first thing you see is that if you are unfortunate enough to earn $54, 885.00 a year, you will be paying taxes at somewhere between 10% to 22% depending upon how you file and how many deduction you have. However, if you are fortunate enough to fall below the $54,884 cut off amount, you will pay no taxes. You will in fact receive a refund of somewhere between $519 to $6431.00 depending upon the number of children you have. This does not strike me as particularly fair.
For one thing, the median net wage in this country in 2018 was $32,838.05. The wages used to qualify are pretax incomes, but are treated as low income by the federal government. If they qualify for EITC, they will no doubt qualify for other federal benefits like food stamps, low income housing, and Medicaid. So there is a bit of a double standard here that needs to be addressed. This is why.
If I were given a place to live for free as a part of my benefits of employment at a Foundation, for example, I would be required to pay taxes on the value of it. Were I to fail to do so, the IRS would consider it a fraudulent representation of my income. Yet if you total just three of the EITC benefits at very conservative rates, you can see the effective income of those filing for the Earned Income Tax Credit are $45,000 up to about $95,000 a year. At what point does the person earning $55,000 a year become an enslaved taxpayer because you can be sure those who are receiving benefits like these are NOT going to vote for anyone who would dare rescind a dime of them.
If you factor in the number of people who work under the table (see post on The Shadow Economy), there needs to be serious re-education in both parties but in the Democratic PROGRESSIVE party in particular. They want to blame the 1% for this but frankly, it is their haste to buy votes with benefits like these that is the problem. It started in the 90’s when Clinton tripled these benefits to get elected and Obama did likewise. There is no excuse for the lack of fiscal responsibility in this political world. We MUST stop this kind of lunacy in this government if we are to survive.
The earned income tax credit (EITC) program is considered by everyone in Congress as the most successful anti-poverty program to date in the federal government, especially by the progressives. I can only say I would hope to high heaven it is because there are tax paying citizens who are taxed into poverty to make their voters happy, especially if they have 2 or more children. Furthermore, it is not just the Earned Income Tax Credit at work here. It is all the other benefits added to the EITC as well.
The chart speaks for itself, and I see indentured tax payers who are paying a lot of money so someone else can have a much higher standard of living than the tax payer himself currently enjoys. Read the JustFacts.org study comparing the American poor with incomes in Europe for an epiphany about the poor in this country. Add to this the fact that a person can be married to a resident alien and have him living with her for 6 months of the tax year and claim him to qualify for tax status Head of Household and gain a $30,000 increase in tax deduction? How is it our tax code values resident aliens that much when it does not even value the single tax payer to that extent? And did Congress forget that the American people have always objected to the federal benefit programs paying people to have more children. Hello Washington! Are you even in the same Universe?
Most Americans would not object to a single person getting earning $21,000 a year receiving Medicaid and food stamps. They WOULD, however, object to a married couple filing jointly earning $54,884.00 with no children qualifying for subsidized housing because that makes their benefit package more than that of the American taxpayer who is paying for those benefits. There needs to be some common sense applied here and cut this EITC off at the point American citizens are expected to pay taxes. Our representatives are NOT representing the tax payers well in this at all, and we should not have to tell them that. So remember this in the voting booth this fall and elect someone who knows in what Universe they live.
“The government you elect is the government you deserve.”
― Thomas Jefferson
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