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  1. #3
    Join Date
    Dec 2011
    Location
    Southern NH
    Posts
    170
    I think what is happening is they pay taxes every pay check, but then they get it back.

    From Wikipedia:
    The United States federal earned income tax credit or earned income credit (EITC or EIC) is a refundable tax credit for low- and medium-income individuals and couples, primarily for those who have qualifying children. When the credit exceeds the amount of taxes owed, it results in a tax refund to those who qualify and claim the credit. That is, this credit is refundable. This tax credit is provided, in part, to offset the burden of social security taxes and to maintain an incentive to work.[1] It has also been part of political debates regarding whether to raise the minimum wage or whether to increase the earned income credit[citation needed], with the EIC being targeted to persons and couples taking care of children (with parents receiving preference over other family members).

    http://en.wikipedia.org/wiki/Earned_income_tax_credit

    30 some years ago, when we didn't have two nickles to rub together, we got WIC coupons, but nothing else.
    Last edited by missjean; 04-02-2012 at 12:09 PM.
    Melancholy is incompatible with bicycling. ~ James E.Starrs


    My bicycle jewelry...
    http://www.etsy.com/shop/Winterwoman...f=pr_shop_more

 

 

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