Most Oklahomans won’t find that unfair.
RFairview, noted, We’re not eliminating it making it not refundable, as House Speaker Jeff Hickman. Why must you get more back than what you paid in taxes? It’s a well-known fact that the EITC was designed, in part, to offset the burden of other taxes on the poor, including sales taxes and Social Security withholding, that can leave them paying a higher effective tax rate than people with far greater incomes.
The credit also is available only to those who are working, and it doesn’t involve the perverse incentives of many other government programs that effectively discourage the poor from seeking employment. The cash payments provided by the Earned Income Tax Credit are not entirely without controversy. One concern often raised is that recipients can use that money for things like, say, cigarettes or liquor, activities many Oklahomans do not seek for to subsidize.
Even so, given the size of the state budget shortfall, loads of social service programs should be cut this year.
The poor also use a disproportionate share of state services and there’s almost no way to shield them entirely from budget impact this year.
The alternative often suggested higher taxes on employers would also harm the poor through higher rates for goods and services and reduced job opportunities. Some object that this balances the budget on the poor. Then again, indeed, Hickman specifically noted that fact. By freeing up read more ›