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Marco Rubio Plans to Offer EITC Replacement
Source:
accountingtoday.com
- Jan 16, 2014
Washington, D.C. (January 14, 2014)
By Michael Cohn
Senator Marco Rubio, R-Fla., plans to introduce legislation that would provide a replacement for the Earned Income Tax Credit in the form of a “wage enhancement.”
In a speech last week marking the 50th anniversary of the “War on Poverty” of the Lyndon B. Johnson administration, Rubio—a possible contender for the presidency in 2016—discussed the impoverished background of his parents, who emigrated to the U.S. from Cuba. He pointed out that poverty is still a major problem in the U.S., but contended that the problem stems more from lack of mobility in society than from income inequality. Rubio rejected the Obama administration’s call for raising the minimum wage, but instead suggested a number of reforms, including replacing the Earned Income Tax Credit.
“We should pursue reforms that encourage and reward work,” Rubio said in a speech last Wednesday. “That’s why I am developing legislation to replace the Earned Income Tax Credit with a federal wage enhancement for qualifying low-wage jobs. This would allow an unemployed individual to take a job that pays, say, $18,000 a year—which on its own is not enough to make ends meet—but then receive a federal enhancement to make the job a more enticing alternative to collecting unemployment insurance.”
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Category: IRS
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