{"id":7707,"date":"2017-11-16T08:34:56","date_gmt":"2017-11-16T14:34:56","guid":{"rendered":"http:\/\/admin.patheos.com\/blogs\/janetheactuary\/?p=7707"},"modified":"2017-11-16T08:34:56","modified_gmt":"2017-11-16T14:34:56","slug":"make-child-tax-credit-refundable-payroll-taxes-huh","status":"publish","type":"post","link":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2017\/11\/make-child-tax-credit-refundable-payroll-taxes-huh.html","title":{"rendered":"&#8220;Make the Child Tax Credit refundable against payroll taxes&#8221; &#8212; huh?"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><head><meta http-equiv=\"content-type\" content=\"text\/html; charset=utf-8\"><meta http-equiv=\"content-type\" content=\"text\/html; charset=utf-8\"><\/head><body><p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-4547\" src=\"https:\/\/wp-media.patheos.com\/blogs\/sites\/533\/2016\/05\/1024px-thumbnail-1024x667.jpg\" alt=\"https:\/\/commons.wikimedia.org\/wiki\/File%3AUS_Navy_050114-N-3659B-050_he_Morale_Welfare_and_Recreation_Child_Development_Center_on_board_Naval_Support_Activity_Mid-South_in_Millington%2C_Tenn.%2C_provides_daycare_services.jpg; By U.S. Navy photo by Photographer\u2019s Mate 3rd Class Joseph M. Buliavac [Public domain], via Wikimedia Commons\" width=\"1024\" height=\"667\"><\/p>\n<p>That\u2019s what Marco Rubio has been pitching on Twitter:<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Disrespectful &amp; wrong to argue that lower income workers don\u2019t pay taxes. <a href=\"https:\/\/twitter.com\/hashtag\/ChildTaxCredit?src=hash&amp;ref_src=twsrc%5Etfw\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">#ChildTaxCredit<\/a> should apply to payroll tax not just income tax<\/p>\n<p>\u2014 Marco Rubio (@marcorubio) <a href=\"https:\/\/twitter.com\/marcorubio\/status\/931136557246971904?ref_src=twsrc%5Etfw\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">November 16, 2017<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>and he\u2019s not the only one.<\/p>\n<p>Here\u2019s <a href=\"http:\/\/www.nationalreview.com\/corner\/453760\/child-tax-credit-four-dimensions\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">Ramesh Ponnuru<\/a> in the National Review:<\/p>\n<blockquote><p>The argument for an enlarged credit also suggests that it should apply against both payroll and income taxes. A household with one child should get the full value of the credit so long as it generates $2,000 or more in federal revenues from all sources \u2014 even if its income-tax liability is below $2,000. It\u2019s an important point because most households pay more in payroll taxes than in income taxes. Tax relief that does not include payroll-tax relief will reach a much smaller number of Americans.<\/p><\/blockquote>\n<p>And there\u2019s a certain appeal in the concept \u2014 it transforms it functionally into something like the Earned Income Tax Credit.<\/p>\n<p>But does that mean that we\u2019re admitting that payroll taxes \u2014 you know, those taxes which fund Social Security and Medicare \u2014 are indeed taxes, and have no direct relationship to the benefits provided at retirement?\u00a0 Does that mean that we\u2019re past the fiction that retirees have \u201cearned\u201d their benefits by paying into the system, and therefore no one can ever make any changes in the system?<\/p>\n<p><a href=\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2016\/04\/are-social-security-benefits-earned-if-not-what-next.html\" class=\" decorated-link\" target=\"_blank\">I had already observed<\/a>, when Clinton and Sanders were announcing their Social Security enhancement proposals, that we\u2019d moved past that notion, at the upper end, as there is now consensus among progressives that the payroll cap should be removed in order for the wealthy to explicitly subsidize the poor and middle class\u2019s Social Security increases.\u00a0 Creating the concept that child tax credits should be refundable based on the amount of FICA tax paid would further boost the notion that these are taxes, like any other.<\/p>\n<p>And, just so you know, I\u2019m totally fine with this, as long as the politicians pitching this, and even, if it happens, making this change, are honest about what it means, and stop trying to have it both ways:\u00a0 at tax, when that\u2019s convenient rhetorically, and earned benefits, when that\u2019s better for the argument one wants to make.\u00a0 But then, I also periodically flog <a href=\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/04\/the-jane-plan-for-old-age-provision.html\" class=\" decorated-link\" target=\"_blank\">The Jane Plan<\/a>, in which we simply admit this, and provide a universal flat benefit paid for out of general revenues, and can never quite seem to get any big wigs to sign on, so what do I know?<\/p>\n<p>\u00a0<\/p>\n<p>Image:\u00a0 https:\/\/commons.wikimedia.org\/wiki\/File%3AUS_Navy_050114-N-3659B-050_he_Morale_Welfare_and_Recreation_Child_Development_Center_on_board_Naval_Support_Activity_Mid-South_in_Millington%2C_Tenn.%2C_provides_daycare_services.jpg; By U.S. Navy photo by Photographer\u2019s Mate 3rd Class Joseph M. Buliavac [Public domain], via Wikimedia Commons<\/p>\n<p>Because it\u2019s an awesome thing, when you\u2019re looking for public domain pictures, that everything from the federal government is public domain.<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>That\u2019s what Marco Rubio has been pitching on Twitter: and he\u2019s not the only one. Here\u2019s Ramesh Ponnuru in the National Review: The argument for an enlarged credit also suggests that it should apply against both payroll and income taxes. A household with one child should get the full value of the credit so long [&hellip;]<\/p>\n","protected":false},"author":2209,"featured_media":4547,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[787,54],"class_list":["post-7707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-child-tax-credit","tag-social-security"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>&quot;Make the Child Tax Credit refundable against payroll taxes&quot; -- huh?<\/title>\n<meta name=\"description\" content=\"That&#039;s what Marco Rubio has been pitching on Twitter: and he&#039;s not the only one. 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