Doyle proposes increasing earned income tax credit
MADISON, Wis. (AP) — Gov. Jim Doyle has proposed increasing a state tax credit for poor working parents by up to $270 per year.
The increase would raise the state's maximum earned income tax credit from about $2,160 to about $2,430.
The credit benefits working parents with three or more children and incomes of less than $45,300. It has broad support because it rewards work and helps the poor.
Doyle says increasing the earned income tax credit will give poor families more money in a time of economic distress.
The credit is refundable, which means families receive it even if they didn't pay that much in income taxes. Increasing it will cost the state $47 million over the next two years.

Mar 14, 2009 at 12:23 p.m.
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ryanscott: Thank you for that response.
Mar 14, 2009 at 12:03 p.m.
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How about this for an idea Doylee...Just cut taxes, give us our money back and cut goverment. It works! There's a proven record of it. Reagan did it in 1982 when our ecomony sank like today and it worked. It helped everyone!
Mar 14, 2009 at 11:12 a.m.
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So $43,500 is poor, interesting as it is close to what Doyle pays entry level district attorneys. Full blown lawyers who have paid $1000's of dollars for their education.
Mar 14, 2009 at 11:04 a.m.
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ryanscott if that is the case then charge them and recoup the loss. I as a single parent have had the EIC and it did help as to my income and it was nowhere near $45,295. and there are alot of low paid people with kids that use the program honestly.
Mar 14, 2009 at 9:51 a.m.
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Bill - An internal audit showed that approximately 70% of Earned Income claims have fraudulent information in them. Currently only about 3% can be audited each year with about 80% of the claims being denied from those audits. Due to staffing shortages and budget cuts the 3% audit rate is the maximum that can be achieved. Anyone who's every been through an EIC audit knows there is a substantial amount of information that needs to be verified during an EIC audit. And also, a key point is that the number of auditors are limited due to "administrative" policy. Read between the lines - look at the secretary and who appointed him.
Mar 14, 2009 at 7:01 a.m.
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ryanscott: In that you work for the Department of Revenue and can tell us "firsthand" about "fraudulent" claims, I would be interested in hearing what you are doing about it. If you have evidence and do nothing about it, then you are part of the problem. So, do you have evidence or are you just spouting off?
Mar 14, 2009 at 12:05 a.m.
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Wake up people! The EIC and Homestead credits are huge rip-offs to the taxpayers of Wisconsin. I work for the Dept of Revenue and can tell you firsthand the majority of applicants claiming EIC are fraudulent. Good old Diamond Jim is "legally" buying votes with both of these programs. There is over $300 million per year that goes out the door to keep certain areas of the state content. If anyone would like I'd gladly explain more - the sad fact is that most of the people in this state who work have no idea of the money that these programs waste.
Mar 13, 2009 at 9:13 p.m.
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farmgirl: What do you mean by saying to the turtle meister, “could you please clarify your comment...it is a bit lacking in details?”
When iLIKEturtles wrote, “............... .” it was very clear. When iLIKEturtles wrote, “............... .” I don’t see how that was lacking in details. (gotta love computer glitches. LoL)
Mar 13, 2009 at 8:18 p.m.
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I am not so sure Iliketurtles....could you please clarify your comment...it is a bit lacking in details...LOL
Mar 13, 2009 at 7:44 p.m.
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iLIKEturtles: I totally agree. Furthermore, I am very impressed by the eloquence of your expression. Others may not see it but your invisible manner works quite well.
Mar 13, 2009 at 4:38 p.m.
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Rep. Robin Vos, R-Caledonia, a member of the Legislature’s budget committee, said he supported Doyle’s proposal because it provides more money to poor families. But he said Doyle was wrong to also propose increasing taxes on corporations and on couples making more than $300,000 a year, saying the state should try to keep taxes low for everyone.
As part of the recent economic stimulus package, President Barack Obama and Congress have increased the federal tax credit for married couples and for families with three or more children starting with the taxes to be paid on this year’s income — part of a broader package of tax relief for poor and middle-class families. Doyle’s budget proposal would keep the ratio of state credits to federal credits the same as it has been in the past, Doyle budget director Dave Schmiedicke said.
As a result of the changes, the maximum state credit would increase from $2,162 to $2,432. The credits are for families making less than $45,295.
Jon Peacock, research director for the Wisconsin Council on Children and Families, praised Doyle’s bill for providing relief to low-income families. But he noted that Wisconsin’s tax credit already does more than the federal version previously did for families with three children or more. Because the federal government is now increasing the credit for three or more children, some state lawmakers may not want to give as large a state credit to those families, he said. Vos agreed.
David Riemer, policy director for Community Advocates Public Policy Institute, said families with three children need the increase provided in Doyle’s budget and should get it.
"If there’s any group these days that need help — other than the unemployed — it’s the working poor," he said.
2nd half
Mar 13, 2009 at 4:36 p.m.
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At a time of economic distress, a state tax credit increase in Gov. Jim Doyle’s budget would put up to $270 a year more in the hands of Wisconsin’s working poor parents.
The Democratic governor’s budget bill would follow the lead of the federal government in providing a larger state tax credit to married couples and families with three or more children who work but don’t earn much money.
The provisions, which would cost the state an extra $47 million over the next two years, would also provide more tax credit money to cover the growing number of people who qualify for the credits because the economic downturn has slashed their incomes.
"It’ll put some more dollars in their pockets," Doyle said Thursday of the proposal’s effects for low-income families. "The earned income tax credit I think has been one of the best approaches for helping working poor people."
The so-called "earned income tax credit" has long had bipartisan support both at the national level and in Wisconsin because it both rewards work and helps the poor. The state and federal credits are refundable, meaning the credit money is given to families who claim it on their income tax returns even if they didn’t pay that much in taxes. Families with less income and more children receive larger credits.
1st half
Mar 13, 2009 at 11:26 a.m.
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Formatting error? Anyway, here's the State Journal:
http://www.madison.com/wsj/home/local/44...
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