Is the Current tax code flawed? My client received an Earned income tax credit of $5,031? Is this outrageous or not?

BayArea_CPA · #1 (**permalink**) 04-10-2011, 01:54 PM

I can't believe it when I see a taxpayer earning $25,000 with 3 kids and getting an earned income tax credit of $5,031 and having to pay no federal income taxes, and on top of that the Government pays another $800 (Making work pay credit).

This is crazy! The middle class folks are subsidizing these folks and encouraging these guys to stay at lower income brackets.

I for one say eliminate Earned Income Tax Credit once and for all, and cut the deficit!

TaxGuru · #2 (**permalink**) 06-16-2011, 07:23 PM

There appears some truth in what you are saying! But, I think a Tax Reform Bill is in the horizon and there will be some changes to the tax code that will eliminate some of these tax credits and other abuses!