Doing my Federal tax form is relatively easy. I enter retirement income, dividend income, interest income, Social Security income and taxes withheld. Do the math and come up with either Tax Due or Refund Due. Simple.
But this year, in an effort to better understand our Federal Tax System, I scanned the complete instruction book for the Form 1040. All 109 pages. A lot of it was tables, so it wasn’t that bad. I’ve never read the paragraph about the Earned Income Tax Credit because the first few lines disqualify me from the tax credit. I know I don’t qualify, but this year I read about it. I found out some interesting stuff.
From the website:
“The EITC is a refundable tax credit. This means taxpayers may get money back, even if they have no tax withheld. Nationwide last year, over 27 million eligible individuals and families received more than $63 billion in EITC.”
“Last year, the average credit was $2,300.”
So 26 million people got $63 billion from the Federal Government, even if they paid no taxes?
That $63 billion was collected from those of us that don’t qualify for EITC.
Is this income re-distribution?
Is this a secret, covert, acceptable form of welfare?
Is it making people dependent on government handouts?