@mysteryman,
Quote:lets go after all those people that pay no taxes at all, yet still get a refund every year. How much would that save if we just stopped giving them refunds?
The problem with this is twofold:
1, these 'credits' that often result in a return for people who paid no taxes at all to begin with are usually the Child tax credit and the EITC; both of these are generally supported by Republicans, who are 'pro-family.' So, they would be highly unlikely to back getting rid of them.
2, if we stopped giving EITC and child tax credit refunds, the total savings would be 80-90 billion dollars a year. That ain't chump change, but it's hardly enough to solve our fiscal problems. In the meantime, we've just made the poorest parts of our country significantly poorer, and reduced the amount of money they are spending in our economy tremendously. Wonder if that will have any negative side-effects?
Can anyone name the industrialized countries who have a lower percentage of taxes/GDP than we do, without looking it up? There are only two of them.
Cycloptichorn