Credit Vs EITC

People generally enjoy working and being productive members of society. The positive effects of the Welfare Reform Act is moving to eventually end poverty in America and promote economic growth. According to the 2005 report measuring welfare dependents “Poverty in 2003 remains much lower than in 1996, the year of passage of the Personal Responsibility and Work Opportunity Reconciliation Act. The official poverty rate for 2003 was 12.5 percent, compared to 13.7 percent in 1996.” ( Gil Crouse, Susan Hauan, Julia Isaacs, Kendall Swenson and Lisa Trivits, 2005 ) States that design welfare-to-work policies that emphasized getting recipients into jobs by shifting to “work-first” welfare systems can modify program rules to allow more earned income,

With evidence from different sources, this paper will show the how the DACA program effects the United States as a whole. “In 2010, in the whole u.s. Population, households with college education heads, on average, received $24,839

“The Economic Policy Institute recently reviwed dozens of studies of what constitutes a “living wage” and came up with an average figure of $30,000 a year for a family of one adult and two children, which amounts to a wage of $14 an hour.” (213). According to Ehrenreich, about 60 percent of American workers earn less than $14 per hour. In all of places where Ehrenreich worked paid seven dollars or less per hour, which means those of people who work in those place cannot even afford to have some essentials services such as health insurance and telephone. Since they cannot even struggle to get out, politicians could takee an action; however, they didn't do any works. “The Democrats are not eager to find flaws in the period of “unprecedented prosperity” they take credit for; the Republicans have lost interest in the poor now that “welfare-as-we-know-it” has ended.” (217). And, they also had a catastrophic error. “In fact, very little is known about the fate of former welfare recipients because the 1996 welfare reform legislation bithely failed to incude any provision for monitoring their postwelfare economic condition.” (217). Congressmen need to read this book to realize the problem, and not satisfy themselves by ignoring failures because they have

A great number of those who reside in New York find the current U.S welfare reform to be very exhausting, humiliating as well as fraught. According to New Yorkers, this welfare will fail them. These simply because they are not poor enough, most of the citizens are already working (De Mause & Lewis Pp 1). The centerpiece of this welfare reform demanded that every citizen to work. There is a need that the state should ensure that almost half of the citizens get public assistance from the government. The beneficiaries should be working for at least thirty hours a week since working for more hours is one of the necessary in welfare reform (Eaton 7)

The last 10 years of U.S. economy can be seen by the impact of immigrant reform in different scenarios. In 2013, undocumented immigrants have been granted legal status; citizenship has helped to increase the U.S. GDP and would accumulate by an additional $1.4 trillion compared to the 10 years in between the 2013 to 2022. This earning will give a chance for the Americans some additional earnings of $791 billion at the same period as a personal income, in which the economy would create job opportunities, about 203,000 new jobs per year. In these years the undocumented immigrants will earn about 25.1 percent more than the current earnings of the immigrants. These earnings show that they will be contributing significantly to the federal, local, and state taxes which will add to tax revenue in 10 years with $185 billion to $116 billion for the USA federal government as well as $68 billion to the state and local government (Stuart Anderson,2011).

It has been reported across media that the number of food stamp recipients has increased tremendously, reaching an all time high of 5 million people (Matt, 2013). The amount forgone is approximately $175 million (Matt, 2013). Of this amount, $75 million has been distributed to individuals who do not meet the eligibility criteria (Matt, 2013). In his research study, Matt (2013) indicated that for every $60 in benefits, Texas doled out close to $6.11 to people or recipients who are not eligible (Matt, 2013). The national average stands at $3.05, which shows that Food Stamp fraud in Texas is alarmingly high (Matt, 2013). This shows clearly that Food Stamp fraud is indeed destroying the economic potential of Texas. The amount used in order to provide benefits to fraudsters is supposed to be used in other areas of economic worth. However, believing that the needy citizens are being assisted, Texas has continued to use its revenues for unwarranted courses of action. Furthermore, the food stamp fraud is costing the tax payers immensely. As such, the cost of benefits provided under this program is met by the tax payers. As such, they must pay some income tax, some of which is channeled into the food stamp course. With an increase in the number of recipients, it means that the tax payers have to forgo more. This, as a result, ensures that those who are economically active continue to suffer at the expense of

The main concepts of the article are describing the corporate welfare system and how it is responsible for growing economic imbalances between the poor and rich populations. The article elaborated on how we cannot ignore the issue anymore because of the substantial loss that we are facing by letting the gap grow (Huff, 1993). The article also goes into the IRS and how there are tax exemptions and deductions that people qualify for and what is allowed.

Income Tax Credit”. For the most part, it seems as though the general public is under

According to the U.S Bureau of Labor and Statistics, in the United States, it is recorded that roughly 5.4 million women are classified as working poor. Which shows they are considered higher than men, 5.0 million (BLS Reports). Among the large portion of Americans considered the “working poor”, this article breaks down not only into gender but race. It also incuded that those of Hispanic or African American race were more than two times more likely to be considered “working poor”, compared to other races considering the white and Asian populations. In 2013, the “working poor” rates for the African Americans and Hispanics were roughly 13.3, and 12.8 percent (BLS Reports). Also

People do not enjoy talking about taxes because they are too political, confusing, and depressing. It is no secret that the American tax code is a mess and something many economists describe as too broken to fix. Despite this, politicians have never stopped from trying to “fix” the code, yet they have had very little success. The U.S. Government’s tax code currently comprises “more than 67,000 pages of complexities” (Boortz, Linder, & Woodall 14). The Americans for Fair Taxation (AFFT) was founded in 1995 with one goal: create the simplest and best tax reform plan that would work in the modern market and economy. The AFFT’s best solution was a bill which they promptly called the FairTax.

The Personal Responsibility and Work Opportunity Reconciliation Act also shifted the spotlight of welfare from family maintenance through government-supported financial assistance to family economic self-sufficiency through paid employment. This federal welfare reform policy known as TANF encourages employment and personal responsibility by mandating states to provide financial benefits to families on a temporary basis, having recipients participate in a work requirement while receiving aid, and providing incentives for recipients to transition off welfare. The programs name indicated its purpose and the social message to the recipient.

Stanton Delaplane once joked about the IRS, saying he heard it had suggested a simplified tax form with only one question: How much money did you make last year? The IRS response was, "Mail it in"." Thank goodness, our taxes haven 't gotten quite that bad. It is true though, that the majority of Americans, most of us included, have to bite the

Great discoveries always begin with great questions. Barbara Ehrenreich asked two great questions, “how does anyone live on the wages available to the unskilled” and “how were the roughly four million women about to be booted into the labor market by welfare reform, going to make it on $6 to $7 an hour” (2001, p. 12). To answer the questions, Ehrenreich embarked upon a journey to discover for herself, whether she could match income to expense as a low-wage worker. In effect, Ehrenreich tested the fundamental premise of The Personal Responsibility and Work Opportunity Reconciliation Act, also known as welfare reform, in order to determine whether those individuals formerly on welfare and largely unskilled, could earn a living wage on the

However, this system of measuring poverty is flawed because if a family makes a dollar more above the set limit, they do not qualify for financial help from the government (NCCP, 2008).The poverty threshold is an inadequate measure of whether people are considered poor or not. Current poverty measures are flawed because it assumes how much a family spends and does not accurately include family resources such as Earned Income Tax Credit (NCCP, 2008). The way that the government measures poverty is based on outdated information that was set in the 60s. Because it has not been sufficient to keep up with the standard of living, those who are living in “high cost cities like New York and those who live in rural areas of the country” (NCCP, 2008) are barely getting by.

(1) In his book, Rewarding Work: How to Restore Participating and Self-Support to Free Enterprise (Harvard University Press, 197), economist Edmund Phelps offers this plan to help the working poor: apply tax credits for "qualified employers" or hire disadvantaged people for "eligible jobs." Evaluate this plan in terms of market incentives, one of the ten principles of economics, to work and current welfare programs. Is the Phelps' plan an improvement over current government policies? Discuss.