{"id":2340304,"date":"2024-09-12T16:11:01","date_gmt":"2024-09-12T20:11:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kamala-harris-pandering-tax-plan-is-no-poverty-panacea\/"},"modified":"2024-09-12T16:15:53","modified_gmt":"2024-09-12T20:15:53","slug":"kamala-harris-pandering-tax-plan-is-no-poverty-panacea","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kamala-harris-pandering-tax-plan-is-no-poverty-panacea\/","title":{"rendered":"Kamala Harris\u2019 Pandering Tax Plan Is No Poverty Panacea"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fkamala-harris-pandering-tax-plan-is-no-poverty-panacea%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2340304&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Vice\u200c President Kamala Harris is advocating for modifications to the \u200btax code to provide relief for working families. She recently discussed\u200d her proposals during a debate with former President Donald Trump and in her new agenda. \u200cHer plan aims to offer tax cuts to over \u2064100 million working and \u2062middle-class Americans through enhanced tax credits, specifically increasing the Child Tax Credit\u200d and the Earned Income Tax Credit. <\/p>\n<p>However, critics, \u200cincluding tax expert Warren Hudak, argue that \u2062the proposal is \u200bpoorly targeted and may lead to unintended consequences, suggesting \u2063that it could distribute government \u200bfunds without addressing the underlying issues that contribute to poverty. The conversation also \u200baddresses \u200chow tax credits\u2014both refundable and nonrefundable\u2014function, explaining that \u2062refundable \u2062credits can \u2063result in taxpayers \u200breceiving money \u200cbeyond\u2063 what they paid into \u2062the system.<\/p>\n<p>The\u2063 issue raised \u200dis significant because while some \u2062families may use tax refunds wisely, others may\u200d spend them recklessly, ultimately \u2062relying on taxpayer money for\u200d financial \u2063support. Harris&#8217;s plan \u200despecially impacts families with children,, but\u2062 there&#8217;s a cap on income \u200deligibility to qualify for these credits, highlighting that not all families benefit equally, as higher-income earners miss out on these \u2064benefits.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>Vice President Kamala Harris wants to tinker with the tax code because &ldquo;working families deserve a break.&rdquo; She promoted the plan in Tuesday&rsquo;s debate with former President Donald Trump and in her newly released <a href=\"https:\/\/kamalaharris.com\/issues\/\" target=\"_blank\" rel=\"noreferrer noopener\">agenda<\/a>.<\/p>\n<p>The Harris plan would give &ldquo;more than 100 million working and middle-class Americans &hellip; a tax cut,&rdquo; her agenda says. But what she really means is she wants to create more government spending and give some folks free money, on the backs of taxpayers who don&rsquo;t qualify for the pricey plan.<\/p>\n<p>Harris aims to bolster the <a href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/child-tax-credit\" target=\"_blank\" rel=\"noreferrer noopener\">Child Tax Credit<\/a> and the <a href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/earned-income-tax-credit-eitc\" target=\"_blank\" rel=\"noreferrer noopener\">Earned Income Tax Credit<\/a>, and beyond that, to boost the Child Tax Credit to $6,000 for families with newborn children.<\/p>\n<p>These tax credits were meant for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/why-suggesting-a-tax-hike-right-now-is-a-terrible-idea\/\" title=\"Why Suggesting A Tax Hike Right Now Is A Terrible Idea\">lower-income people<\/a>, but the plan will likely have unintended consequences, according to Warren Hudak, a federally licensed tax practitioner and past president of the Pennsylvania Society of Enrolled Agents. He has testified before Congress on tax matters.<\/p>\n<p>&ldquo;The problem is, it&rsquo;s not targeted. It&rsquo;s not outcomes based,&rdquo; Hudak told The Federalist. &ldquo;Who are we helping, and how are we helping? The problem with the tax code &mdash; using it for these kinds of policies &mdash; it just gives away money to use for anything they want. I can tell you, there&rsquo;s a reason why they&rsquo;re poor, and it isn&rsquo;t because they make great choices.&rdquo;<\/p>\n<p>Think about it. What happens when you (if you) get a tax refund? Some Americans put it into savings, use it to buy a more reliable car, pay down debt, or allocate the extra money for a myriad of other responsible uses.<\/p>\n<p>Others take that tax return, the biggest lump sum they will see in the year, and go on a spending spree. Finally, they can treat themselves to a vacation, an expensive new gaming console, or a big-screen TV.<\/p>\n<p>They can do that because it&rsquo;s their money; they earned it, right?<\/p>\n<p>Actually no. Many did not earn it. Beyond a refund, many tax filers receive a payment that far exceeds what they paid in taxes.<\/p>\n<h2>Refundable and Nonrefundable Tax Credits<\/h2>\n<p>There are two kinds of tax credits, refundable and nonrefundable. A nonrefundable credit can reduce your tax burden. For example, if you owe $100 in taxes but you have a $75 nonrefundable credit, you will only pay $25 in taxes. If you have enough nonrefundable credits, you can take your tax burden all the way down to zero. &nbsp;<\/p>\n<p>A refundable credit can take you beyond zero, wiping away your entire tax burden &mdash; if you have any &mdash; and giving you money, in the form of a tax return, beyond what you paid into the system.<\/p>\n<p>A portion of the Child Tax Credit is refundable. Each child under 17 is worth $2,000, and of that, the maximum &ldquo;Additional Child Tax Credit&rdquo; is $1,700 for 2024. That $1,700 is the refundable portion. <\/p>\n<p>Let&rsquo;s say you have one child and that qualifies you for a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">child tax credit<\/a> of $2,000. You owe $1,000 in taxes. The credit brings your tax liability down to zero, and you get an additional $1,000. If you have two children, add another $1,700 to your refund, for a total of $2,700.<\/p>\n<p>And under the Harris plan, that new baby you&rsquo;re expecting next year will be another $6,000, for a total of $8,700 in refund money. Hello, new hot tub! &nbsp;<\/p>\n<p>&ldquo;So, you&rsquo;re getting somebody else&rsquo;s money,&rdquo; Hudak said.<\/p>\n<p>The Child Tax Credit is not for everyone. If you file single and earn $200,000 or more, or file jointly with a household earning $400,000 or more, the Child Tax Credit starts to decrease. And single filers earning more than $240,000 and joint filers earning over $480,000 are not eligible for the credit. Your taxes pay for the refundable credits for other families.<\/p>\n<p>Then there is the Earned Income Tax Credit for the adults in the household. This is another refundable credit for low-income households. A <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-wave-of-stimulus-checks-coming-in-multiple-states\/\" title=\"New Wave of Stimulus Checks Coming in Multiple States\">single tax filer<\/a> with no children earning less than $18,591 in 2024<strong> <\/strong><a href=\"https:\/\/turbotax.intuit.com\/tax-tips\/tax-deductions-and-credits\/earned-income-credit\/L4lmLBNWa\" target=\"_blank\" rel=\"noreferrer noopener\">could receive<\/a> a credit of up to $632. If you have two children and earnings of up to $55,768 (single) or $62,688 (married filing jointly) the maximum Earned Income Tax Credit is $6,960.<\/p>\n<p>The credit has income guidelines, with eligibility for those <a href=\"https:\/\/turbotax.intuit.com\/tax-tips\/tax-deductions-and-credits\/earned-income-credit\/L4lmLBNWa\" target=\"_blank\" rel=\"noreferrer noopener\">earning<\/a> up to $66,819 in a household that is married and filing jointly.<\/p>\n<p>You must earn <em>something <\/em>to be eligible for this credit. Social Security or unemployment benefits do not quality. Selling goods online, <a href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/earned-income-tax-credit\/earned-income-and-earned-income-tax-credit-eitc-tables\" target=\"_blank\" rel=\"noreferrer noopener\">self-employment<\/a>, running errands, and doing tasks for others do qualify as ways to be considered an earner.<\/p>\n<p>&ldquo;It&rsquo;s so easy to cheat on the Earned Income Tax Credit,&rdquo; Hudak said. The rate of fraud from this tax is huge, he said.<\/p>\n<p>&ldquo;The Earned Income Tax Credit has <a href=\"https:\/\/turbotax.intuit.com\/tax-tips\/tax-deductions-and-credits\/earned-income-credit\/L4lmLBNWa\" target=\"_blank\" rel=\"noreferrer noopener\">no effect<\/a> on certain welfare benefits,&rdquo; according to TurboTax. A refund is not considered income when determining eligibility or benefit amounts for programs such as<strong> <\/strong>Temporary Assistance for Needy Families (TANF); Medicaid and Supplemental Security Income (SSI); the Supplemental Nutrition Assistance Program (SNAP); and low-income housing.<\/p>\n<p>Millions of low and middle-income Americans receive the Earned Income tax Credit, and it is helpful; but it is not a long-term answer to year-round inflation stress &mdash; and it doesn&rsquo;t lift people out of poverty.<\/p>\n<p>Yet Harris wants to expand this program because it is popular with low-income voters. It will increase the burden on certain taxpayers and supersize the <a href=\"https:\/\/www.pgpf.org\/national-debt-clock?gad_source=1&amp;gclid=CjwKCAjw_4S3BhAAEiwA_64YhlUaFREbh6Ac-UDRqUWNoq3zpZ1ln0TZyV8-IdubSM3eeI75r23pGxoCvmwQAvD_BwE\" target=\"_blank\" rel=\"noreferrer noopener\">national debt<\/a>, passing more misery down to future generations of Americans who won&rsquo;t be able to ignore the bill.<\/p>\n<hr>\n<p>      Beth Brelje is an elections correspondent for The Federalist. She is an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lara-logan-challenges-media-to-ask-certain-questions-about-afghanistan\/\" title=\"Lara Logan Challenges Media To Ask Certain Questions About Afghanistan\">award-winning investigative journalist<\/a> with decades of media experience.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vice President Kamala Harris is looking to modify the tax code, arguing that &#8220;working families deserve a break.&#8221; She advocated for this initiative during her debate with former President Donald Trump and in her recently unveiled agenda. According to her plan, over 100 million working and middle-class Americans would receive a tax cut. However, critics suggest that this approach may lead to increased government spending and provide financial assistance to some individuals at the expense of taxpayers who do not qualify for these costly benefits.<\/p>\n<p>Harris intends to enhance the Child Tax Credit and the Earned Income Tax Credit, proposing an increase in the Child Tax Credit to $6,000 for families with newborns. While these credits were originally designed for lower-income individuals, Warren Hudak\u2014a licensed tax practitioner\u2014warns of potential unintended consequences. He expressed concerns about the lack of targeted outcomes in such policies.<\/p>\n<p>Hudak pointed out that many people use their tax refunds responsibly by saving or paying off debts, while others might splurge on luxuries like vacations or electronics. However, he notes that not all recipients have actually earned their refunds; many receive payments exceeding what they contributed in taxes.<\/p>\n<p>There are two types of tax credits: refundable and nonrefundable. Nonrefundable credits can reduce your tax liability but cannot result in a refund beyond what you paid in taxes. In contrast, refundable credits can provide money back even if you owe no taxes at all.<\/p>\n<p>For instance, under current rules for 2024, each child under 17 qualifies for a $2,000 Child Tax Credit; up to $1,700 of this amount is refundable as an Additional Child Tax Credit. If someone has one child and owes $1,000 in taxes while qualifying for the full credit amounting to $2,000, they would not only eliminate their tax bill but also receive an additional refund of $1,000.<\/p>\n<p>Under Harris&#8217;s proposal\u2014which includes an extra $6,000 credit for newborns\u2014this could total up to $8,700 per family from various credits alone.<\/p>\n<p>However,Hudak emphasizes that such benefits come from taxpayer funds and are not universally available; higher earners may see reduced eligibility or be completely disqualified from receiving these credits altogether.<\/p>\n<p>The Earned Income Tax Credit (EITC) is another refundable credit aimed at low-income households with specific income thresholds determining eligibility based on family size and earnings. While it provides significant support for millions of Americans each year\u2014especially those struggling financially\u2014it does not serve as a long-term solution against inflation or poverty alleviation.<\/p>\n<p>Despite its popularity among low-income voters\u2014and Harris&#8217;s desire to expand it\u2014the EITC could place additional strain on certain taxpayers while contributing further to national debt burdens passed down through generations<\/p>\n","protected":false},"author":104,"featured_media":2340305,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/09\/Kamala-Tax-.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[34402,32438,5894,15876,39559],"class_list":["post-2340304","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-economic-policy","tag-kamala-harris","tag-politics","tag-poverty","tag-tax-plan"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/09\/Kamala-Tax-.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2340304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/104"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2340304"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2340304\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2340305"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2340304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2340304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2340304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}