> EITC was not initially designed as welfare, rather it was "supposed to be a temporary refundable tax credit for lower-income workers to offset the Social Security payroll tax and rising food and energy prices."[0]
Hah, that makes a lot of sense. The Social Security tax is suffocating for self-employed people at the bottom of the economic dogpile. 12.4% of your already-spent income is an impossible bill for low-income people to pay.
I, of course, diligently tracked my income and paid all taxes due. But... if your income is 'off the books', it's easier to just not pay Uncle Sam than to put a target on your back by filing possibly-indefensible returns.
Hah, that makes a lot of sense. The Social Security tax is suffocating for self-employed people at the bottom of the economic dogpile. 12.4% of your already-spent income is an impossible bill for low-income people to pay.
I, of course, diligently tracked my income and paid all taxes due. But... if your income is 'off the books', it's easier to just not pay Uncle Sam than to put a target on your back by filing possibly-indefensible returns.