Why work harder?
Democrats are lining up to give away as much of your money as possible. Senator Sherrod Brown (D-OH) and Reps. Bonnie Watson Coleman (D-NJ) and Ro Khanna (D-CA) introduced The Cost of Living Refund Act, a plan to nearly double the Earned Income Tax Credit (EITC). The EITC is a welfare program administered by the IRS. It is referred to as a “refundable” credit because it allows for tax refunds even in cases where a person didn’t pay in any money to begin with. Hence, it is—in every sense of the word—welfare. Under the bill, the EITC would increase to as much as $12,588 per year, depending on income, filing status and family size. Moreover, citizens as young as 21 years old would be able to claim the credit (you must be 25 now), even if they have no children. Plus, for the first time, students would be eligible for the credit. The Tax Foundation estimates that the bill would cost $1.8 trillion between years 2020-2029. Don’t forget that what you subsidize, you get more of. When you increase federal welfare benefits for not earning more income, you encourage people—especially young people—to not earn more income. What incentive do people have to get ahead if the tax system pays them to stay poor?
