The Earned Income Tax Credit

Agreeing with Trump on the EITC?

I never thought I would see the day that I agreed with Donald Trump on anything, but that day has come. The Earned Income Tax Credit (EITC), is a refundable tax credit provided to qualifying lower income individuals. It is utilized by many lower income people as a way to supplement their low incomes. The credit is primarily available to individuals that work but often still make below the poverty line. The credit often allows these people remain above the poverty line. The credit is anticipated by many lower income people through out the year and these individuals are often taken advantage of in attempts they make to access these funds. Institutions such as H & R Block and Jackson Hewitt provide these individuals with a local vendor that can assist them with completing their returns properly in order to receive the funds. Unfortunately, H & R Block and others charge exorbitant fees for these services which often take away from the large refunds these individuals would receive. A system is necessary to regulate these preparers however their services or similar services are necessary as these people often do not have the resources or ability to complete these returns on their own. H & R Block and other tax preparers are generally located in lower income neighborhoods. They are often the only access that a lower income individual will have to an accountant or individual who might have the knowledge necessary to ensure they receive their complete refund. These preparers are not regulated by any institution. They are not required to have a college degree or take any form of examination. Changes such as a degree, or exam requirement would be helpful to ensure that they are providing these individuals with the best services possible. These preparers should also be required to reduce their fees and provide a flat rate for lower income individuals so that they are not taken advantage of. Additionally, in certain circumstances these preparers should be required to provide pro bono hours for those who cannot afford to pay. There are government preparation services but they are often not located in areas where lower income individuals can access them. So yes Trump may be right about H & R Block unless they take some affirmative steps to change the way they handle individuals that receive the EITC. The following article http://www.forbes.com/sites/kellyphillipserb/2015/09/04/fix-the-tax-code-friday-tightening-up-the-eitc/print/ describes Trump's reasoning for why H & R Block should go out of business.