“50 Days, 50 Ways” Goes After Unearned Income Tax Credits
(Concord) Republican Grant Bosse today called for the elimination of unearned and under-served tax credits that cost law-abiding taxpayers $8.5 billion a year. The Earned Income Tax Credit provides incentives for low-income families to move from welfare to work by tying tax credits to earned income. This “reverse income tax” was strongly advocated by free-market economic Milton Friedman, and has broad bipartisan support.
“The Earned Income Tax Credit makes it easier for people to climb onto the economic ladder, but handing out tax credits to people who aren’t eligible defeats the purpose of the program,” Bosse said. “We shouldn’t be taking money from taxpayers just to hand it out to people who haven’t earned it.”
The Government Accountability Office recommends that Congress establish better verification for the Earned Income Tax Credit, and provide clearer definitions of which families are eligible. These steps would save taxpayers $8.5 to $9.9 billion a year. The IRS estimates that more than a quarter of the credits paid go to people who are not eligible, despite a five-year effort to reduce improper payments.
“The Earned Income Tax Credit is a good idea, since it provides incentives for work rather than welfare,” Bosse added. “But let’s make sure our money is going to people who deserve it, and save $8.5 billion a year while we’re at it.”
To date, Bosse has proposed more than $19 billion in taxpayer savings by eliminating unnecessary federal programs. To learn more about Bosse’s aggressive grassroots campaign, go to www.Bosse2008.com.