Wednesday, December 5, 2012

Entitlements (Part II)


Noun:
  1. The fact of having a right to something.
  2. The amount to which a person has a right
Child and Dependent Care Tax Credit
Earned Income Tax Credit
Social Security--Retirement & Survivors 

1. Child and Dependent Care Tax Credit: Federal courts have confirmed that expenses incurred for the care of a dependent, such as babysitting or daycare, while the taxpayer is at work, are not included in deductible business expenses and are not deductible under IRC section 162(a). As a result, single-earner households with qualifying individuals are favored over two-earner households with qualifying individuals, as the cost of daycare often outweighs the extra income made in two-earner households. IRC section 21 serves to lessen this imbalance by allowing a limited credit for certain expenses related to the care of a qualified dependent.
 Verdict: Am I entitled to this credit? I would say yes. Of course, the amount of children I have in my lifetime will have nothing to do with my tax liability, but a percentage of my tax dollars goes towards welfare recipients and the amount of children they bring into this world. So, why should I not get a little bit of a break? If Entitlement is placed on the fact that I benefit from having a child, then go ahead and get rid of it. But get rid of it for everyone, no matter how wealthy or poor.

2. Earned Income Tax Credit: The United States federal earned income tax credit or earned income credit  is a refundable tax credit for low and medium-income individuals and couples, primarily for those who have qualifying children. When the credit exceeds the amount of taxes owed, it results in a tax refund to those who qualify and claim the credit. That is, this credit is refundable. This tax credit is provided, in part, to offset the burden of social security taxes and to maintain an incentive to work.
 Verdict: I think the last sentence in the above paragraph says it all. "This tax credit is provided, in part, to offset the burden of social security taxes and to maintain an incentive to work".
 The BURDEN of Social Security? You mean the BURDEN of making sure our senior citizens do not starve? And to maintain an incentive to work? Are you fucking kidding me? We as a nation now need an incentive to work? Taking care of your family, and making sure your children have better opportunities than you do are not incentive enough? This is what our country has become? Go out and work, and you will receive money in return for taking care of your family???????????????  FUCK THAT!!!!!!!!!!!!!!!
 How's this? We replace minimum wage with Living Wage, designated by states, and we rid ourselves of the EITC?

3. Social Security--Retirement & Survivors: In the United States, Social Security refers to the Old-Age, Survivors, and Disability Insurance (OASDI) federal program. The original Social Security Act (1935and the current version of the Act, as amended, encompass several social welfare and social insurance programs.
Social Security is primarily funded through dedicated payroll taxes called Federal Insurance Contributions Act tax(FICA). Tax deposits are formally entrusted to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or the Federal Supplementary Medical Insurance Trust Fund which comprise the Social Security Tax Fund.
By dollars paid, the U.S. Social Security program is the largest government program in the world and the single greatest expenditure in the federal budget, with 20.8% for Social Security, compared to 20.5% for discretionary defense and 20.1% for Medicare/Medicaid. According to economist Martin Feldstein, the combined spending for all social insurance programs in 2003 constituted 37% of government expenditure and 7% of the gross domestic product. Social Security is currently estimated to keep roughly 40 percent of all Americans age 65 or older out of poverty.
 Verdict: We as a country can not get rid of Social Security. I live among many Seniors who depend upon their S.S. just to survive. In fact, one of the '08 Obama campaign promises was to eliminate all taxes on Seniors whose income was less than 40K. A promise not kept. Many jobs that Americans will land in, will not require the employer to establish a retirement fund. And that's fine. If said employee is paid a decent wage, they should be able to save a little. But without a 401K, or pension of some sort, it will be next to impossible for that person to survive after retirement. To me, that is unacceptable. Our fellow working Men and Women of this country has paved a way. They should be compensated for such. If we as a country can not take care of our elderly, what does that say about us?

........to be continued, we have a lot more to cover.

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