The Payroll Tax and EITC
The EITC is a great idea, just too complex. Low-income workers are often consuming various federal assistance as it is, so it makes sense to let these families and individuals take home a maximum amount to try to address their own problems directly. Under the EITC, they have to wade through the complex tax filing system and often do not understand how to claim their benefits. Why not just let them keep the dough from the get-go? These are the same folks taking ridiculous payday loans. Cut income tax rates and the social security tax to zero on incomes at least up to a reasonable poverty line. Again, they're getting very little return on their money in the social security system and taking payday loans to survive day-to-day. This money could be easily restored to the system by raising the income cap on social security and it would be a huge boost to lower-income workers by allowing them a tax cut right on their paycheck.I would strongly consider tougher usury laws to protect these folks from digging deeper and deeper holes for themselves through payday loans and other unaffordable lending schemes.
posted by Chris @ 1:02 AM
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