Is it possible to restore the child tax credit back to where it was?

[initforme]

Those part time jobs don't need to be done. Easy call. If an employer wants labor they are going to have to find ways to attract workers.

 

[busybee01]

Liberals always come up with “but….but….payroll taxes.” They are talking primarily about Social Security contributions, which the lower income get back at a greater percentage of their income than middle and high income.

The very unfair fact is that half of Americans pay no federal income tax, and 40% - and this was BEFORE Biden expanded welfare - are on some sort of government support such as food stamps. So not only are the bottom half not contributing to the government; they are taking out.

But now that Biden is giving government support checks to all parents with incomes of $150,000 or less, he has moved more people into the category of those not paying taxes. In reality, we now have a majority of people not paying federal income taxes.

Who is paying? Granny, who gets $25,000 in Social Security year and draws another $25,000 from her IRA savings. So Granny, after a life of paying income taxes, STILL has to pay on her $50,000 income. In the meantime, a husband earning $150,000 with three young kids gets more than $10,000 a year from other people.

There is nothing unfair. Just a bunch of bullshit from you. Our tax policies are based on ability to pay. They may not pay taxes on the IRA depending on what kind it is. There is nothing wrong with helping people out with the cost of children.

 

[DBA]

Those part time jobs don't need to be done. Easy call. If an employer wants labor they are going to have to find ways to attract workers.

They have to outbid the government. It shouldn't be that way. Government should not be a competitor for private business.

 

[colfax_m]

This has caused three problems:

I don’t see any data on the scope of these problems.

 

[DBA]

There is nothing unfair. Just a bunch of bullshit from you. Our tax policies are based on ability to pay. They may not pay taxes on the IRA depending on what kind it is. There is nothing wrong with helping people out with the cost of children.

We already help people with the cost of children. More food stamps, housing accommodations and Medicaid can be extended as a recipient has more children. Now, with the refundable child tax credit, they are paid cold hard cash per child under 18. Keep in mind, we(the Government) also end up in a net negative situation for those that have several children but pay very little income taxes due to low pay or creative accounting for self-employed folks with a lot of deductions. Common sense should dictate that this is not a sustainable strategy, but Democrats are short on common sense.

 

[colfax_m]

We already help people with the cost of children. More food stamps, housing accommodations and Medicaid can be extended as a recipient has more children. Now, with the refundable child tax credit, they are paid cold hard cash per child under 18. Keep in mind, we(the Government) also end up in a net negative situation for those that have several children but pay very little income taxes due to low pay or creative accounting for self-employed folks with a lot of deductions. Common sense should dictate that this is not a sustainable strategy, but Democrats are short on common sense.

What’s not sustainable about it?

 

[DBA]

What’s not sustainable about it?

The main concern is that it incentivizes lower income people to have more children and not to work. Their children are likely to follow in their parent's footsteps and we have exponential growth in both a labor shortage and cost. Despite what you think, money doesn't grow on trees and we need people to work and create supply to meet demand.

 

[colfax_m]

The main concern is that it incentivizes lower income people to have more children and not to work. Their children are likely to follow in their parent's footsteps and we have exponential growth in both a labor shortage and cost. Despite what you think, money doesn't grow on trees and we need people to work and create supply to meet demand.

How does it incentive them to not work?

Assistance like food stamps, housing and anything income related incentives people to not work since those things go away when you start making too much money. CTC allows people to almost afford child care so they can work and earn a lot more than a few grand from the government.

Labor shortage is driven by boomer early retirees, not moms.

 

[Mac-7]

The ”expanded” child tax credit is a misnomer for many: the tens of millions of people who pay no income taxes whatsoever now get thousands of dollars in welfare per year. A young couple with three children, who owe no taxes, get around $10,000 a year, taxfree, or the equivalent of a part-time job.

This has caused three problems:

1) Mothers with part-time jobs have now quit them because they don’t need the earnings anymore, exacerbating the labor shortage

2) Those who did not have jobs now are flush with cash they never had and spending more freely, also exacerbating the labor shortage, inflation is rampant.

3) As far as the inflation, the parents getting several hundred dollars of OPM can absorb it, but it is causing a massive hardship for young singles, childless couples, retired next couples, and of course our senior citizens on modest fixed incomes,

There is something very wrong with policy that allows only a certain segment of the population to improve their lives when it harms other segments of the population.

Can we reverse this back to the original? In doing so, we would remove at least some of the pressure on inflation and reduce the financial hardship caused to people without children.

Ot appears that the Earned Income Tax Credit still exists

Which means that women with children could be given an extra $9,000 per year

This is insane

 

[DBA]

Labor shortage is driven by boomer early retirees, not moms.

Are you trying to tell me that all the help wanted signs on restaurants and other small businesses are due to early retirees? That is odd because where I live there were never a lot of 65+ waiters and drive thru workers. You are kidding yourself.

 

[Mac-7]

How does it incentive them to not work?

Assistance like food stamps, housing and anything income related incentives people to not work since those things go away when you start making too much money. CTC allows people to almost afford child care so they can work and earn a lot more than a few grand from the government.

Labor shortage is driven by boomer early retirees, not moms.

Old folks have earned their retirement

Young women with kids should not be getting paid for doing nothing

 

[EyeBRollin]

Oh Jesus Christ. Tax credits do not cause inflation.

Inflation is caused by energy prices, supply, and demand. Fix the supply shortage and this inflation will dissipate.

 

[colfax_m]

Are you trying to tell me that all the help wanted signs on restaurants and other small businesses are due to early retirees? That is odd because where I live there were never a lot of 65+ waiters and drive thru workers. You are kidding yourself.

Restaurant workers moved into other fields. The entire labor market has shifted. That shows in the data as a huge segment of the population has left a job.

 

[colfax_m]

Old folks have earned their retirement

Young women with kids should not be getting paid for doing nothing

Never said they haven’t. Just if you’re going to be blaming the labor shortage on someone, look to who is actually causing it.

Question is whether society values raising kids. I think it should. Seems important.

 

[bendog]

The ”expanded” child tax credit is a misnomer for many: the tens of millions of people who pay no income taxes whatsoever now get thousands of dollars in welfare per year. A young couple with three children, who owe no taxes, get around $10,000 a year, taxfree, or the equivalent of a part-time job.

This has caused three problems:

1) Mothers with part-time jobs have now quit them because they don’t need the earnings anymore, exacerbating the labor shortage

2) Those who did not have jobs now are flush with cash they never had and spending more freely, also exacerbating the labor shortage, inflation is rampant.

3) As far as the inflation, the parents getting several hundred dollars of OPM can absorb it, but it is causing a massive hardship for young singles, childless couples, retired next couples, and of course our senior citizens on modest fixed incomes,

There is something very wrong with policy that allows only a certain segment of the population to improve their lives when it harms other segments of the population.

Can we reverse this back to the original? In doing so, we would remove at least some of the pressure on inflation and reduce the financial hardship caused to people without children.

Well doesn't the tax credit simply revert to what it was before the dems "expanded" it in their first stimulus bill?

 

[bendog]

Never said they haven’t. Just if you’re going to be blaming the labor shortage on someone, look to who is actually causing it.

Question is whether society values raising kids. I think it should. Seems important.

Weren't kids already being raised? My mom went back to work when her youngest got to 3rd grade. That was back in the 70s

 

[Mac-7]

Never said they haven’t. Just if you’re going to be blaming the labor shortage on someone, look to who is actually causing it.

Question is whether society values raising kids. I think it should. Seems important.

See post #30

 

[bendog]

See post #30

I think the point was the waiters moved on to better paying jobs. Possibly after people retired.

But the reality is we had a shrinking labor force when trump shut down legal immigration. It was all good with Trump voters when Trump was trying to get wages to rise.

 

[Mac-7]

But

President Trump Reduced Legal Immigration. He Did Not Reduce Illegal Immigration

The population of illegal immigrants remained about the same as when he took office.

www.cato.org

When able bodied Americans are fully employed then you can lobby for more legal immigration

Btw, large numbers of legal immigrants are older family members who add nothing to the US economy

Its true that trump was unable to end illegal aliens from getting into the country but it was not for lack of trying

 

[colfax_m]

See post #30

Asked and answered.