MISSING OUT: Poor families face the reality of no tax rebate

The Grand Rapids Press ^ | Wednesday, June 04, 2003 | Ted Roelofs

[FourPeas]

MISSING OUT: Poor families face the reality of no tax rebate

Wednesday, June 04, 2003

By Ted Roelofs
The Grand Rapids Press

With six children to look after, a broken-down van and an annual income of about $15,000, Kalala Palmer figures she could use a break.

She shops at Goodwill for clothes for her kids and buys them new shoes only on their birthdays. She struggles to pay the YMCA membership she hopes will keep them off the streets.

The 26-year-old Grand Rapids resident also is among millions of working-poor families left out in the cold by the $350 billion tax cut signed in May by President Bush.

"It hurts, but when you've been poor as long as I've been, you just deal with it," Palmer said. "What do you have to do to get on top?"

It's a question under debate this week in Congress, as politicians come under fire for omitting working-poor families from the $400-per-child tax credit going to much of middle-class America.

According to analysis by the Center on Budget and Policy Priorities, the tax cut measure leaves families earning up to $26,625 a year with no tax credit. That affects 8 million children.

At the same time, $400-per-child rebate checks are expected to be in the mailboxes of millions of middle-class households by July.

Though Bush officials defended the measure, it is a void some Republicans are looking to fill before it becomes campaign ammunition for the Democrats.

Senate Finance Committee chairman Chuck Grassley, R-Iowa, introduced a provision Monday to expand the number of families eligible for per-child tax credits -- and to increase the size of those credits -- as part of a broader effort to make the middle-income child credit permanent.

Grassley's proposal would cost up to $90 billion over 10 years.

In contrast, Sens. Blanche Lincoln, D-Ark., and Olympia Snowe, R-Maine, introduced legislation to aid the same poor families, at a 10-year cost of $3.5 billion.

Bush aides say the measure signed by the president May 28 is fair, because low-income families like that of Kalala Palmer pay no income tax. White House spokesman Ari Fleisher said poor and minimum-wage families receive government benefits in other ways, through programs such as food stamps, Medicaid and earned income tax credits.

"By actually forgiving all income taxes and then giving people money beyond that, it's not the same way other people on the income scale are treated," Fleisher said.

U.S. Rep. Pete Hoekstra, R-Holland, agrees.

"Tax reform is not about payments to the working poor," Hoekstra said. "Per-child tax credit is exactly that. It is a credit against liabilities owed to the federal government."

Hoekstra said he is willing to consider extra help for the working poor but would make no promises.

"If there are certain people in the Senate that want to make direct cash payments to the poor, then we should have that discussion. I don't know whether or not I would vote for it."

But U.S. Rep. Vern Ehlers, R-Grand Rapids, believes Congress ought to revisit the issue.

"I think it's a reasonable sort of thing to do," Ehlers said.

Though working-poor families might not qualify for a tax credit because they pay no income tax, Ehlers thought it reasonable to give them some help, too.

"Since the purpose is to help people with children, then it makes sense to be sure it applies to everyone who has children."

Though her circumstances are anything but easy, Kalala Palmer tries to find the humor in life to keep her spirits up.

She recalled a recent discussion with a friend, who informed her that Congress was going to pass tax breaks for individuals who get stock dividends.

"What in the world is that?" she said of stock dividends, starting to laugh. "I ain't got no stock. There's no way I got that stuff. You got to laugh about this stuff because it hurts too much to be crying."

Until January, Palmer worked as a nurse's aide, sometimes working double shifts to try to make ends meet. Then she became worried about her oldest son, Terrell, whom she feared was getting into trouble on the streets.

She quit her job to keep an eye on him, and now earns money making clothing and doing alterations out of her home. Her aunt pitches in to help with child care, and Palmer also gets a federal subsidy to pay most of her rent.

On the wall in her dining room, she keeps a series of sayings she posted at the suggestion of her church pastor. They include such sayings as, "Be Kind to Each Other" and "No Shouting to Each Other," and one reads: "The Palmer name is a good name and we are good people."

Outside her house, Palmer looks at her 1989 Chevy Astro van, with sagging suspension, rusty doors that don't open and a large dent on the right side. She muses what it would be like to get a better car.

"If I had a car and a nice house, I wouldn't know what to do. One day, all these rainy days are going to end."

[FourPeas]

What is so hard to understand about a tax cut cutting the taxes of those who pay them not being a hand-out to those who don't pay taxes?

[basil]

Isn't that the truth! The dims will harp on this forever. They are so ingenius about things like this. Unless people really look into the truth of the matter, the dims will persuade them that the Republicans are once more starving the chilrun!

[HassanBenSobar]

This is so dumb. How much does someone with 6 dependents and 15k in income pay in the first place? With all the deductions, exemptions and credits, it's got to be really miniscule.

[fightinJAG]

This is just the latest attempt by the Rats to impose their Alternate Reality.

A poor person who does not pay taxes and who "needs a break" is looking for welfare, not a tax cut.

If the Rats want to advocate increasing welfare payments, have it, you rodents. But don't insult my intelligence by trying to call a hand-out a "tax cut."

Puh-leeze.

[Coffee_drinker]

She pays ZERO

[TheDon]

The Demorats voted down the tax credit for those who don't pay taxes.

[highpockets]

I believe this womens problem is not tax cuts, it is that her men have not been cut.

[CHICAGOFARMER]

Here is the deal>

26 years old, and six kids.

Sounds like the sperm donor don't live with the kids. The sperm donor does not work but his #$@@$% works.

Sounds to me like the lady needs to take two aspirin each night for birth control. Two aspirins held tightly between her knees.

[verity]

26 year-old with six kids. Typical profile!

[evaporation-plus]

I'm still trying to figure out why I won't get a credit for
my 17 year old son....

[Centurion2000]

With six children to look after, a broken-down van and an annual income of about $15,000, Kalala Palmer figures she could use a break.

She's GOT a break ... she pays NO INCOME TAX.

[Nat Turner]

With six children to look after, a broken-down van and an annual income of about $15,000, Kalala Palmer figures she could use a break.

Well maybe if she wasnt forced to attend a govt school she would have been smart enough not to have 6 kids or try to raise them on 15,000$ a year. Then she would realize there is no free lunch and become a producer instead of a consumer of other peoples labor

[supercat]

With six children to look after, a broken-down van and an annual income of about $15,000, Kalala Palmer figures she could use a break.

Out of curiosity, how does her take-home pay compare with what she'd get on welfare?

[Steven W.]

how about "poor families face the reality of having no taxes"!

[FITZ]

With six children to look after, a broken-down van and an annual income of about $15,000

Maybe her husband could try and find a higher paying job, or she could quit being a stay-at-home mother. If she's divorced, then maybe she ought to have the father(s) pay a little more in child support. Having 6 kids is a good enough decision as long as you can afford to provide for those kids ---why expect to steal from others and their own kids?

[ErnBatavia]

This reminds me of Larry Elder on his radio program, laying out quite plainly....certain "strata" (to be PC) have a whole different 'sense of logic'. I remember him saying this in reference to the O.J. Simpson jury.

[Steely Tom]

The solution to the problem of people "missing out" is simple: make the tax cuts permanent, so that when the people who are now "missing out" finally make it into the upper-income levels, President Bush's tax cut is still there to benefit them as well.

There ya go. Didn't even break a sweat.

(steely)

[spodefly]

Just so I am sure I understand the purpose of the Federal Government, as I would understand it from this article: the purpose is to take money from productive people and give that money to semi-literate baby-making machines. 6 kids, no mention of a husband, a lack of education and marginal job skills, and the Federal Government is supposed to come to her rescue. Zero personal responsibility ... just crank out the kids and wait on the checks to roll in.

The tone and slant of this article expertly panders to the Lowest Common Denominator mentality.

[Xenalyte]

Husband? Stop, you're killin' me!

[wingnuts'nbolts]

Back to WELFARE that Clinton lowered. That is what a child contribution is more money for having more children. We have been here before.

[Fraulein]

U.S. Rep. Vern Ehlers, R-Grand Rapids: "Since the purpose is to help people with children, then it makes sense to be sure it applies to everyone who has children."

Huh? Is this a joke? Oh, I forgot; logic doesn't matter -- it's for the children!

[FITZ]

and Palmer also gets a federal subsidy to pay most of her rent.

The taxpayers are already giving her free housing, I would bet she's getting food stamps, WIC, Medicaid, school lunches, energy assistance and lots of other free things ----she pays no taxes so shouldn't get a refund for something she didn't give ----$15,000 spending money wouldn't be too bad. Over $1200 a month just to buy non-essentials?

[FourPeas]

Ehlers is one of the biggest jokes. I cringe every time I see the 'R' behind his name.

[Howlin]

They need to call it what it is: A HANDOUT because they feel guilty.

[Howlin]

Apparently it's back.

Isn't this a TAX HIKE for us??????

[FourPeas]

Just so I am sure I understand the purpose of the Federal Government...The tone and slant of this article expertly panders to the Lowest Common Denominator mentality.

And, as sad as it is, this is from a newspaper in a decidedly conservative Republican part of the country.

[supercat]

The taxpayers are already giving her free housing, I would bet she's getting food stamps, WIC, Medicaid, school lunches, energy assistance and lots of other free things ----she pays no taxes so shouldn't get a refund for something she didn't give ----$15,000 spending money wouldn't be too bad. Over $1200 a month just to buy non-essentials?

I thought people making $15K/year were ineligible for most of the handouts available to those making $0/year. Does anyone have specifics?

[Temple Drake]

huband? HAH! And I wonder how many guys it took to produce the six little bastards. Where is their contributin? I think this should fall in the category of "you made your bed, you 'ho -- now lie in it."

[Vinnie]

Why not give these people a 10%, 20% or 30% tax cut?

Since they don't pay tax they won't be getting anything but the sound bites will be great.

[Montfort]

If you gave a wedding reception, and the caterer overcharged you and you called him on it, I guess it's okay if the caterer just hands the refund to a guest or who looks needy, or gives an equal amount to each of your guests.

No, it should go back to you, the person who paid the bill. If you want to keep it, invest it, or give it away, that is for you to decide.

[Sparta]

If you pay taxes, you get a tax cut. If you don't pay taxes, you don't get a tax cut. Is it that hard to understand? I forget, we're dealing with socialists here.

[muir_redwoods]

I tell you what. She can have my cut and my rebate and I'll take her tax burden. How can anybody seriously argue for a tax rate cut to less than zero?

[glockmeister40]

Twenty-six years old, SIX KIDS for chrissakes. DOES THIS NEWSPAPER EXPECT US TO THINK SHE IS MAINSTREAM? Does this paper expect us to have sympathy for her? I'd bet dollars to doughnuts that all of her brood will be doing jail time in the next ten years.

How many times has this woman made the wrong choice in her life?

[Amerigomag]

It appears that Kalala Palmer has neither learned to use the word "no" nor understands the meaning of the word "rebate".

[Jorge]

How can anybody seriously argue for a tax rate cut to less than zero?

Democrats can. They don't want people who pay taxes to get a tax cut. But those who pay no taxes they argue should get a tax rebate.
They're nuts.

[Samwise]

I'm going to run to the store and whine about a $400 refund for the check I did not give them.

How much sympathy do you think I will get?

[IronJack]

Bush aides say the measure ... is fair, because low-income families ... pay no income tax.

What can be clearer than that? Or is this another exercise in liberal "logic," where up is down, strong is weak, darkness is light, and inequity is fair?

[Excuse_My_Bellicosity]

MISSING OUT: Poor families face the reality of no tax rebate

Get a violin and sing me a sob story.

[MEG33]

None...they might call the funny farm for a pick up!

[Marie Antoinette]

Oh, she can afford to have a membership to the YMCA? How about dumping that membership fee and calling it her "rebate", "tax cut" or whatever.

Cry me a river.

[GovernmentShrinker]

AND most of her rent is paid by "federal subsidies" (a.k.a. you and me and all the other hardworking folks who didn't go out and have 6 kids by age 26 on an income of $15,000).

[supercat]

AND most of her rent is paid by "federal subsidies" (a.k.a. you and me and all the other hardworking folks who didn't go out and have 6 kids by age 26 on an income of $15,000).

Exactly what welfare and related benefits is someone earning $15,000 allowed to receive? I don't want to dispute your point, but I am curious.

[Fraulein]

BTTT

[randog]

I say we give her the money. Send her an unsigned check with instructions to hold it between her knees until she reaches menopause, at which time the check will be signed. Trust me, it'll be money well spent.

[katze]

Yeah, she probably gets her child care free, and I've read a bus picks up these employees, to and from work. The Dems wring their hands about low-income paying "payroll taxes", meaning their contribution to Social Security. She will get her windfall at the end of the year, EITC.

[Uncle Sausage]

The criteria for these handouts is not only the annual income, but also the number of dependents in the family. With six dependents, she could probably earn $30K and still be eligible for all the freebies.

[hunter112]

Yeah, she probably gets her child care free, and I've read a bus picks up these employees, to and from work.

Well, on the off chance that she pays for child care, she certainly hasn't gotten any breaks there. The child care credit has remained absolutely unchanged since 1981, the limits have not raised one iota.

No, I don't believe she deserves money for nothing, but at least she is working. We have no idea about the father of the children, maybe he's a bum. Paying people to breed is a bad idea for government whether its welfare or child tax credits.

[maxwellp]

Is this lady married? "What do you have to do to get on top?"

Well for one thing, you work and save some money before you turn out six children. Marrying a decent guy also helps.

Sheesh! I really don't know how to reach someone like this. She sounds borderline retarded.

[optimistically_conservative]

26 and 6 kids? Where's dad(dies)?

Then she became worried about her oldest son, Terrell, whom she feared was getting into trouble on the streets.

Terrell's how old?

Palmer said. "What do you have to do to get on top?"

You're kidding, right? It's a rhetorical question, right?

What's that thing they say about life being hard and being stupid?

[optimistically_conservative]

You may find your answers at the links below. I'd like to know how much of her $15,000 income is already tax funded.

http://www.financeprojectinfo.org/win/dataportal.asp

For example, try the link below and type $7.20/hr for 40 hr days, 52 weeks.
http://www.connect2jobs.org/connect2cash/