I went to a meeting this morning for the Prosperity Campaign. I work at a volunteer tax site and have for over five years, and we are gearing up for our free tax preparation season. In the midst of this meeting as we were talking about changes to the Earned Income Credit I was struck by a major depression. I could rake in almost $6,000 should I suddenly discover that I have 3 children! I’m missing out on a serious wealth building scheme!
I’m saying this in a bit of jest – and yes, I know, three children would cost me a lot more than what I would get back on a tax refund – but as someone with no children, each year I rebel against the idea that someone could deserve a larger tax break than me simply for the fact that they made a personal / family choice to have children. Why should this choice affect their taxes? Or my taxes for that matter?
I really like volunteering for the campaign and doing free taxes for our customers. Many of them truly have NO idea how to do them properly and are really grateful for the service.
Yet, every year I struggle internally with so many aspects of the crazy, broken IRS code. For example, did you know that the IRS sent out over $300 billion (BILLION!) in tax refunds last year? The maths astound me; red flags go up and I think to myself, “There is a major issue with this system”! Why spend all the time and effort to collect the money only to refund such a chunk? Must we keep IRS workers in jobs?
NOTE TO SELF: Do some research on the total amount collected by the IRS for taxes before completely flipping over the numbers.
That is all for now.