Dilemma - The Earned Income Tax Credit

... [T]he Obama Administration has demonstrated absolutely no interest in [tax reform]. But then there is the tax code, and the code itself is the biggest single challenge to reforming it.

Our politicians have tried to do too much through the tax law. And that has created a complicated mess of winners and losers that makes the task of trying to reform it, even to some level of sensible, a daunting one.The poster child for this mess is the Earned Income Tax Credit. Like it or not, the EITC is welfare administered through the tax system. Do we really want our tax system to do that?

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... I believe that as EITC recipients work their way up the income ladder, they will be paying more income taxes to, in part, help people behind them...

But things like the EITC have no business in a system that is supposed to collect revenue to support the country. Welfare and taxes, to me, is like oil and water.

And there is another huge problem. The EITC program leaks like a sieve. More bluntly and honestly stated, well-intentioned as it may be, the EITC has been corrupted...

So, as we think of tax reform, should the EITC stay or should it go?

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View Chris Bergin's opinion in its entirety on the taxanalysts® Blog.

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