And we struggle to make ends meet!
Its called earned income credit. Most of my clients think, if you have a kid the government should pay you $3,000-4,000 every year (per kid). But that is not the way it works. It is all based on how much you make.
If the government would get rid of earned income credit, then our national debt would be reduced significantly.
ok, here are the statistics from my experience. 95% of my clients are low income people. The average refund is $4,000-9,000. The average income is $8,500-$22,000. Now, I am a VERY small business with just a couple hundred clients. Imagine all of the people that fall into this category across the whole entire country. I would guess that if the IRS would get rid of the earned income credit, this country would save many Billions, if not Trillions of dollars. THAT's how significant this problem is.
Have you ever heard a reporter or politician mention earned income credit? I have not. They keep talking about taxing the rich. This is a WIDE OPEN free for all that should be nixed asap.
Oh, and get this. I know this is going on, but I can't prove it. If a chick has LOTS of kids, meaning more than 3. She "sells" them to relatives. Meaning, the relatives claim the "extra" kids on their returns so they get back the $4-8,000. Then pay the momma for being able to claim the kid. I've heard of people paying $1,000 for claiming a kid. I'm telling you, it will make your head spin, turn red, and pop off if you really think about it in the big picture.
