Arkaign
Lifer
- Oct 27, 2006
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That may be true for some but the EIC on a few people actually sends them into negative territory in the form of taxes (at least at the complete federal level - Income, SS and Medicare). I would not mind to see the EIC removed as well as other requirements on welfare in general. Too many people playing the system (i.e. people who intentially work less to get EIC because they make more than simply working - yes, I've seen people do just this).
I think that's a fair point. I do think the EIC overall is pretty inexpensive, and in in the hands of the people that get it is a form of oiling the economy at the low end. Basically the $ is transferred in a quick cycle :
Taxation > Gov't coffers > EIC checks to poor folks > small/medium businesses
In essence, the EIC checks almost immediately go towards day care, beer, car repair, whatever.
Ideally I don't think it should exist as it is though. But it's not as bad as some people think, you have to logically play through the progression of possession of that $. The vast majority will recirculate rapidly through the economy. Tax rebate checks, of which the EIC contributes a notable amount, are a big boost to the economy during that part of the year. One only needs to watch commercials of the various businesses catering towards those sales to realize the effectiveness.
I'd like to see more of this type of gov't spending (welfare/EIC/etc) go towards job training, education, infrastructure, etc. But not all of it or even a majority at first.
