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What is unearned credit tax?

What the hell is the point of a tax credit?? (you either get money that was yours already, or someone else's)?

  • Seems like this benefits no one but those who want to try to manipulate the tax code. Couldn't you just let people keep more of the money they earn to begin with?? (instead of paying it in and then getting it back). Keeping money you already earned IS FREE. The IRS calculating tax credits and mailing out checks COSTS MONEY. Not to mention if they give you too much (they won't tell you) and they expect it back (when taxes are due next year). http://finance.yahoo.com/news/INSIDE-WASHINGTON-Rude-apf-15091434.html?.v=1 Millions of Americans enjoying their small windfall from President Barack Obama's "Making Work Pay" tax credit are in for an unpleasant surprise next spring. The government is going to want some of that money back. The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the massive economic recovery package enacted in February. Most workers started receiving the credit through small increases in their paychecks in the past month. But new tax withholding tables issued by the IRS could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that will have to be repaid at tax time. At-risk taxpayers include a broad swath of the public: married couples in which both spouses work; workers with more than one job; retirees who have federal income taxes withheld from their pension payments and Social Security recipients with jobs that provide taxable income. The Internal Revenue Service acknowledges problems with the withholding tables but has done little to warn average taxpayers.

  • Answer:

    Its a way to pretend you are helping the people before you tax em up the wazzu.

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Nothing makes sense with our government. Just look at the clowns running it.

It's the American Government way of controlling the people of the United States. Not going to happen. That would make too much sense!

The "refundable" tax credit is welfare. Those who don't pay taxes get to keep the money. The tax tables haven't been changed or the tax rate lowered only the amout your employer sets aside for your income tax (tax withholding table) That means if you are one of the 50% of Americans who still pay federal income tax you will have to pay every dime back next April 15th. I said it before. Obama is a crook.

I agree; I favor lower taxes so you keep your money to begin with. We should go to a national sales tax system; that way, no one would ever have to file taxes again! In repsonse to those who claim "sales tax is regressive": It may hurt the poor, but it helps the middle class who are hit heavily by income tax. Middle class make up over 90% of the population. Those who are truly poor make up less than 10%.

Its a way to give people welfare and pretend its something else.

The point is that the government uses the tax code to control behavior. Just not taxing people to start with means the government would give up power and people would have more freedom. Why would the governing classes want that? Rats in scientists' mazes are less controlled than American citizens when it comes to taxes.

"Couldn't you just let people keep more of the money they earn to begin with" There it is! THAT is a real "economic recovery plan". The gigg is up though. Recovery is Not what they're seeking. Control is what they're seeking and everything in between is just a means to to an end. Meaning the 'end' of our freedoms and the advancement of an all powerful federal government. Time to wake up now kiddies.

New tax withholding tables are the government letting you keep more money. Nowhere above do they mention the IRS cutting checks. The REAL problem is that they screwed up the tables, imagine that, and a lot of poor and middle class people are going to have to pay back money they have already spent which will impact our ability to financially recover.

Wow, this is the first time I've seen this posted today! Tax rates were reduced, which went directly into our paychecks. Some people will get back more than they are allowed by the end of the year, meaning they will owe the difference. Same as it's always been. Why is this complicated? So when he says things will change, you assume that means every single thing will change? A little bizarre, but OK.

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