earned income tax credit

There’s a new tax form on the market and it’s looking for a piece of your side hustle. The new 1099-K tax form targets independent contractors who are underreporting on small transactions. Sales resulting in $600+ on online marketplaces, digital wallets, crowdfunding platforms & more now means there is one more form to deal with when navigating an already complex tax code. Between the increasing focus on undercompliance and a lower minimum reporting threshold, it certainly feels like the government is cracking down on the lowest rungs of society and allowing the uppermost echelons of society to get away with paying little to nothing thanks to a crack team of tax experts. Today host Jack Russo and CPA, Steve Rabin discuss earned income tax credits and the possibility of Silicon Valley wealth getting slapped by billionaire taxes.

Got more tax questions? Feel free to contact Steve Rabin at his website: https://www.taxservice2u.com/

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Biden doesn't like McCarthy's debt ceiling plan.  Biden says it has "huge cuts" to Americans.  What he is really saying, it is big cuts to big government and his ability to spend:  https://apnews.com/article/speaker-kevin-mccarty-debt-ceiling-biden-1dd542c6c7acfc2287e68e6facae2be4

More than $2 trillion in government "payment errors" have cost taxpayers:

The Genral Accounting Office still sees payment errors as a big problem.  And some 78% of these errors were contained within five programs last year - Medicaid, Medicare, the Paycheck Protection program, unemployment insurance, and the earned income tax credit.

https://fortune.com/2023/04/18/payment-errors-federal-government-cost-taxpayers-more-2-trillion/

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Scott and Jeff discuss tax justice with Amy Hanauer, Executive Director of Citizens for Tax Justice and its sister organization, ITEP (Institute on Taxation and Economic Policy). We ask Amy what a fair tax system would look like. We discuss problems with the current tax system. We touch on methods the government uses to redistribute income, like the earned income tax credit and the child tax credit. We briefly discuss corporate taxes, and Amy shares her view that corporations do not pay enough taxes. 

President Biden is pushing a national $15-an-hour minimum wage in his $1.9 trillion Covid-19 relief bill. Still, there’s a better way to help low-income workers than his job-killing minimum-wage proposal. Steve Forbes on why Biden’s $15 minimum wage is not the solution and on the alternative to consider that would help people without destroying jobs and businesses.

Steve Forbes shares his What’s Ahead Spotlights each Tuesday and full podcast episodes each Friday.

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Diane Whitmore Schanzenbach is the director of the Institute for Policy Research at Northwestern University and the Margaret Walker Alexander Professor at the university. From 2015-2017, she was the director of the Hamilton Project, an economic policy initiative housed at the Brookings Institution in Washington, DC. She is also a research associate at the National Bureau of Economic Research, a research affiliate of the Institute for Research on Poverty, and a nonresident senior fellow in economic studies at the Brookings Institution.

Whitmore Schanzenbach studies issues related to child poverty, including education policy, child health, and food consumption. Much of her research investigates the longer-run impacts of early life experiences, such as the impacts of receiving SNAP benefits during childhood, the impacts of kindergarten classroom quality, and the impacts of early childhood education. She recently served on the Institute of Medicine’s Committee on the Examination of the Adequacy of Food Resources and SNAP Allotments.

This conversation was recorded in 2019. Since the COVID-19 pandemic struck, Diane has been researching the effects of the pandemic on food insecurity in real time. She also has created an app with an IPR summer undergraduate research assistant that tracks measures of food insecurity across all 50 states.

Our student quote is read by Aly Mariani.

Resources:

1. Diane Whitmore Schanzenbach’s bio.
2. Daniel Shaviro’s blog post about her recent visit to the NYU Tax Policy Colloquium
3. Read some of Schanzenbach's blog posts.
4. Selections of Schanzenbach’s research
5. Follow Schanzenbach on Twitter: @dwschanz.
6. The student quote comes from Michael Graetz’s 2001 Erwin Griswold Lecture for the American College of Tax Counsel.

Sara Greene is a Professor of Law at Duke. She received her JD from Yale Law School and her PhD in social policy and sociology from Harvard University in 2014. Greene also practiced housing law and tax credit matters at the law firm Klein Hornig in Boston.

Greene’s areas of expertise include consumer bankruptcy and debt, poverty law, housing law, tax, contracts, access to justice, and qualitative research methods. Greene’s research uses interdisciplinary methods to better understand the relationship between law and inequality. Her work has been published or is forthcoming in the New York University Law Review, the Duke Law Journal, the Minnesota Law Review, and the American Bankruptcy Law Journal, among others. Greene, along with others, integrated her research on the Earned Income Tax Credit into a federal policy proposal, “The Rainy Day EITC: A Reform to Boost Financial Security by Helping Low Wage Workers Build Emergency Savings.” Senators Cory Booker (D-NJ) and Jerry Moran (R-KS) adopted the proposal and are co-sponsors of a bipartisan bill proposing the “Refund to Rainy Day Savings Act.”

Our student quote by B. John Williams is read by Kuan-Ting from Taipei, Taiwan.  

Resources

1. Professor Greene’s bio.
2. Daniel Shaviro’s blog post about Greene’s visit to the NYU Law Tax Policy and Public Finance Colloquium.
3. The paper Greene presented at the Colloquium, “A Theory of Poverty: Legal Immobility”
4. “The Rainy Day Earned Income Tax Credit: A Reform to Boost Financial Security by Helping Low-Wage Workers Build Emergency Savings”
5. The Pencil Question article is Who's Naughty and Who's Nice—Frictions, Screening, and Tax Law Design, 61 Buff. L. Rev. 1057 (2013).
6. The student quote is taken from an article in Tax Notes.