Tlaib: My Legislation Is the 'Earned Income Tax Credit on Steroids'

|
 @eb454
|
Posted: Dec 13, 2020 10:15 AM
Tlaib: My Legislation Is the 'Earned Income Tax Credit on Steroids'

Source: AP Photo/Carolyn Kaster

Freshman Congresswoman Rashida Tlaib (D-MI) on Saturday made the case for a Biden-Harris administration, as well as incoming progressive House members, to support her new pieces of legislation that she considers to be the "Earned Income Tax Credit on steroids."

"Many of us so-called 'Squad members' come from really challenged districts that have felt very unseen and unheard from all levels of government," Tlaib explained. "One of the key things to just realize and honor is that many of my residents – which is the third poorest congressional district in the country – had to pass blighted homes, closed schools, you know, poverty, to vote for President-elect Biden and Vice President-elect Harris, to honor them, to make sure that government is about them, about people and really truly centering around truly combatting some of these structural racism, policies that keep folks in poverty and so much more."

According to the freshman congresswoman, she expects a Biden administration to support the BOOST Act, which she introduced in the House earlier this year. She claimed her piece of legislation, which has a price tag of $380 million dollars, "would uplift 45 percent of people out of poverty."

"The BOOST Act, when I introduced it, folks were hesitant on it. And I said, 'Look, I found out you can pay for it,'" she recalled. "You can pay for it by looking at the corporate tax breaks that the current administration gave, which is $1.7 trillion dollars in those tax breaks."

Tlaib stated tax cuts didn't benefit people like her neighbors. Instead, she wants to see her BOOST Act passed, which she said is "like earned income tax credit, which is so bipartisanly supported in the past. It's the Earned Income Tax Credit on steroids."

"This is how we can be bold and make changes for our neighbors," she concluded.

According to Tlaib's congressional website, the BOOST Act would bring nine million families and three million children out of poverty. 

Here's how the funding would work:

The BOOST Act would provide a Middle-Class Tax Credit of up to $6,000 per family per year. A single taxpayer is eligible for up to $3,000 annually, while married couples/families/joint filers are eligible for a maximum of $6,000 annually. More importantly, the beneficiary can choose to receive the credit in advance to help families meet their basic financial needs. Below are additional specifics of this bill:

  • Individuals can receive up to $250 per month
  • Families can receive up to $500 per month.
  • The credit is refundable, meaning that taxpayers who qualify for it can get it even if they owe no taxes. Filers with no income are still eligible for the credit.
  • Can be claimed by single filers making wages up to $49,999.
  • Families making wages up to $99,999 are eligible.

What Tlaib fails to mention is that anyone who is deemed low-income or middle class could benefit from her plan, even if they have no income and aren't working. Her plan removes the incentive for people to obtain – and hold – a job. So no, this isn't the "Earned Income Tax Credit on steroids." This is a classic example of redistributing the wealth.