President wants to eliminate Advanced EITC

[veritas]

http://www.reuters.com/article/idUSTRE60T21S20100130?type=politicsNews

[taxmom34]

good, i worked 16 years at HRB and 13 years on my own and never had client who did get the advanced EITC. some clients had asked early on "how it worked" but that was it.

[S T]

How About

Just eliminating EITC altogether!
Let the Government figure out a different methodolgy to dispurse these monies under these low income programs - NOT through the Tax Return!

Sandy

[Jesse]

I'm in agreement with you Sandy.

I have a Freshman in college whom I love dearly, but I refuse to give cash! I'll take him grocery shopping, even fill his gas tank now and then, but no cash! If he keeps up the grades I made a promise to help pay off his student loans - but no cash!

[Snaggletooth]

Obama Wants a Lot of Things

I don't want this to turn into a political thread - in fact I am Democrat and voted for him as an alternative to 8 more years of Republican cronies.

I don't recall a speech where several wishes were targeted but were in direct conflict with one another. Much of this involves tax law, and stuff that we work with and have to keep up with.

For example, more jobs for infrastructure. Bulldozing, concrete pouring, civil engineering, building trades, etc. But in the same breath, he wishes also to eliminate favorable capital gains rates. In my adult career I have seen three attempts to curtail capital gains, all of them were directly or indirectly associated with disastrous economic results. These were in 1969, 1982, and 1987-1990. The last such attempt never even came to fruition. In each case, Congress restored favorable treatment for the benefit of bulldozing, concrete pouring, civil engineering, building trades, etc.

There were several other examples where desires were specifically targeted, but whose methods of attainment were in conflict with other parts of the speech. I don't want to dwell on this for fear of political innuendos, but would alert those in our profession that these efforts, even though perhaps in opposite directions, could easily involve us.

[RLymanC]

Go Back in History

the Democrats have spent this counrty to death.

[David1980]

Just eliminating EITC altogether!
Let the Government figure out a different methodolgy to dispurse these monies under these low income programs - NOT through the Tax Return!

Sandy

From the article:

"The White House said only 514,000 people -- 3 percent of those eligible -- claimed the credit and the error rate for the program was high, with 80 percent of recipients not complying with one or more of the program's requirements."

Makes me wonder if EITC is really any better than AEITC as far as failure to comply goes... Both seem to have serious issues of fraud and abuse.

"This ineffective and prone-to-error program should be eliminated," could certainly apply to EITC.