Showing posts with label EITC. Show all posts
Showing posts with label EITC. Show all posts

Monday, December 07, 2009

IRS Targets a Woman for Being Too Poor

You think I'm kidding (via). The short version is that they took a look at her stated income and decided there was no way for her to survive in Seattle making that much. So they audited her, claiming she owed them $16,000 in back taxes (her annual income is only $18,992).
She couldn't pay it. Her dad, Rob, has run a local painting business, Porcaro Power Painting, for 30 years. He asked his accountant, Driver, for help.

Rachel's returns weren't all that complicated. At issue, though, was that she and her two sons, ages 10 and 8, were all living at her parents' house in Rainier Beach (she pays $400 a month rent). So the IRS concluded she wasn't providing for her children and therefore couldn't claim them as dependents.

She stood to lose what is called earned income tax credit, a refund targeted to help low-income workers. You qualify only if you're working, as Rachel has been.

Driver quickly determined the IRS was wrong in how it was interpreting the tax laws. He sent in the necessary code citations and hoped that would be the end of it.

Instead, the IRS responded by launching an audit of Rachel's parents.

"I was floored," says Rob Porcaro, 59. "I get audited now and then in my business, so I've been through it before. But to have them go after me because of my daughter, well, I've never heard of anything like it."

The IRS eventually backed off the audit, but did insist that Rachel was not supporting her own children. So now, she can't claim them as dependents (and she paid the IRS $1,438, plus penalties and interest, as a result).

The article notes that much of the IRS' "soak the poor" mentality is traceable to a longstanding Republican vendetta against the Earned Income Tax Credit -- a rebate for the working poor. Insisting that it is a vehicle for massive fraud (despite almost certainly costing the government considerably less), they've urged the IRS to target the poor. It's delightfully symbiotic: the GOP shields its rich patrons, and the IRS gets to pick on folks who generally don't have the resources to fight back. Everybody wins, save lady justice.

Friday, June 27, 2008

Thursday, October 25, 2007

Triple Play

I know anti-FRC blogging is like a bad drug habit, but I just can't kick. They are just so unbelievably hackish it manages to make my blood boil. Today's daily update by leader Tony Perkins is a perfect example.

The first item is an attack on Native Hawaiian Government Reorganization Act, which they illustrate via someone holding a match to the constitution. Even if the Akaka Bill is a bad idea, I fail to see (and the FRC doesn't even purport to explain) what it has to do with the FRC's broader agenda -- except insofar as that agenda is "harass liberals," which, to be fair, is the only unifying thread I've ever seen in the FRC's work.

This is aptly demonstrated in the second item, which is a rant about Charlie Rangel's tax reform bill. What is breath-taking here is the perfidy with language. Rangel's bill would "increase taxes" on many "married couples" (what a meaningless phrase -- Bill and Melinda Gates are a "married couple"), but it would "increase welfare payments through the earned income credit," something you may know as the "Earned Income Tax Credit", but while the FRC can't stand policies that actually help working families, they wouldn't be caught dead opposing a tax cut, so hence we have our little omission. Perkins concludes:
The overall proposal resembles more a Marxist proposal of redistributing income than something worthy of the leaders of the free world. I'd agree with Congressman Rangel that the tax system needs a major overhaul, but more in the direction of simplicity and equality, not of a socialistic labyrinth.

Come on, Tony. Red-baiting is so 1950s.

Finally, the last item tries to diffuse the Democratic Congress' accomplishments writ large (on the occasion of the House's 1,000th roll call vote). Here, at least, some of their problems bear a relationship to the FRC's stated policy aims, such as "presents to the abortion/pro-death community by supporting Planned Parenthood and passing a bill to increase embryonic stem cell experimentation, and gifts to the homosexual lobby by voting on so-called 'hate crimes' legislation," they open the list with neither killing babies nor killing homosexuals, but rather by opposing the minimum wage hike (and here you thought that the anti-Marxism rant was a one-shot deal!). It is, as Perkins puts it, but a "gift to the labor unions." How horrid! The working class gets all the breaks.

If there is a difference between the FRC and the propaganda arm of the RNC, I'm just not seeing it.