Thursday, August 9, 2012

Republicans again Promise to reduce Earned Income Tax Credit, slashing take home pay for the Poor and Middle Class.

The talk is getting louder and more common.

I've been hitting this story hard, so here we go again; Republicans are going to increase taxes on the poor and middle class by turning tax credits into a form of welfare. Nice trick if the public lets them get away with it. Here, one of the dumbest guys at the Wall Street Journal, Steve Moore, calls them "refundable tax credits." To Moore, the Earned Income Tax Credit should be reduced, which amounts to a reduction of a "benefit" and not really a tax cut.

It took them awhile to fine tune and come up with this con, but many are buying into it. The credit actually makes up for the federal and FICA taxes, which take a huge bite out of those in lower wage jobs. Not a concern for the conservative elite though.

And with that reduction in take home pay, demand suffers, like at cheap fast food restaurants:

They're really not getting, are they? Consumer demand is the real job creator.

No comments: