To: The Joint Committee on Taxation
The House Ways and Means Committee
The Secretary of the US Treasury
From: People for Fair Taxes
Re: EITC, UT, SS and Railroad retirement benefits, and 3-year limit on claiming overpayments and withholding taxes
Date: September 27, 2015
Please consider revising the following sections of the US federal tax code:
Section 32. Earned Income. The Earned Income Tax Credit is so low as to not be worth the paperwork claiming EITC for many taxpayers, especially those who are “self-employed” or “independent contractors” who must pay the full Social Security payroll tax. For working taxpayers with no qualifying children, the credit percentage is only 7.65%, almost 6 times (600%) less than for working taxpayers with 2 or more qualifying children. This is unfair. The EITC is not a welfare program, and there should NOT be an extra subsidy for those who have children. Please raise the amount of EITC so single working taxpayers will not pay more in social security payroll taxes than they receive in EITC, and equalize the rates for all taxpayers.
Section 85. Unemployment Compensation. It is wrong to “kick a man when he is down.” When someone is out of work, it is not right to add another tax burden by taxing unemployment compensation, which is derived from taxes paid by employers. A tax on a tax is wrong.
Section 86. Social Security and RR benefits. Again, it is wrong to tax benefits derived from a tax, in this case, including half of Social Security and Railroad Retirement benefits as gross income for tax purposes. These retirement benefits were earned from taxes paid by working taxpayers, and should NOT be taxed.
Section 6511. Limitations on Credit or Refund. Why does Congress feel it can confiscate money deposited by working taxpayers in good faith with the Internal Revenue Service, simply because the taxpayer did not “claim” their tax credit or refund within 3 years? Withholding taxes are voluntarily deposited with the IRS to pay past, present or future taxes, not as a gift to Uncle Sam. If any other financial institution treated deposits the same way, it would be considered thievery.
Thank you for your attention to these matters.
People for Fair Taxes
c/o Gary J. Minter
Las Vegas, Nevada 89165