Is It a Good Idea to Axe Tax Breaks for Parents?
If Congress can't reach an agreement, a number of tax breaks for parents could be on the chopping block.
CNN Money reports that four tax breaks for low-income parents could cease to exist soon. That means thousands of dollars that used to go back into your pocket after filing taxes, won't.
For the Earned Income Credit, "low-income" is defined as a married couple with three kids making a little over $50,000 a year.
If Congress fails to extend tax cuts before the end of the year, the Child Tax Credit, Earned Income Credit, Child and Dependent Care Credit and American Opportunity Credit would be reduced or chopped, according to CNN Money.
This isn't a done deal, but a definite possibility.
What do you think about those tax breaks potentially ending? We have a significant amount of national debt -- should we try to plug the hole with more tax money, or should it come out of other programs?
And the big question: Should this come out of the pockets of low-income taxpayers, or would it make more sense to tax those with high incomes? A few thousand dollars is a few thousand dollars, but it means something different to someone who makes $50,000 vs. $250,000.
On the other hand, could the current tax credits be seen as money taken from the rich and simply handed over to the poor/low-income?