A less painful way for the government to save money would be to revise the refundable child tax credit guidelines. The qualification for the “refundable” portion of the credit should be 15% of income over $15,000 instead of the current $3,000.
This credit should pick up where the earned income credit leaves off.This would not be a “tax increase” because the people who qualify for the “refundable” child tax credit owe zero taxes any way. Between this credit and the Earned Income Credit, the government is currently giving away up to $8,500 to a family with 3 kids that pays zero income tax. I’m all for helping the less fortunate, but $8,500 is more than the government can afford right now. Reducing theses credits to a combined total of $5,500 will save the government a lot of money and still help a lot of people.