BPC’s worker credit answers both of these criticisms. For starters, the credit doesn’t hang on the number of children under the worker’s roof. All workers receive a 21.3 percent credit on the first $20,300 of earnings up to a maximum of $4,324. And in two-worker households, both partners get the credit. Thus, a married couple with no children and $40,600 of earnings split equally between them gets a $8,648 subsidy under the BPC plan. Right now, that same couple gets no EITC but qualifies for a $800 Making Work Pay credit, though that temporary subsidy (part of the American Recovery and Reinvestment Act) expires in January.This change would mainly shift benefits to childless workers- like high school kids with summer jobs. I'm generally opposed to social welfare being distributed through the tax code, mostly because it creates a lot of confusion about who pays what in taxes and what it all means, but also because of the companies willing to prey on taxpayers' ignorance.
I heard from too many people rushing off to tax preparers on January 1 to file their returns just to get this huge windfall and to make sure that "someone else doesn't claim my babies" who were willing to take a short-term loan (at a percentage of their total credit, of course). It's gross and stupid and I wish that the IRS wasn't complicit in it.