This week the Tax Hall of Shame Award goes to the Oklahoma Legislature for preying on the poor. As the New York Times reports, the legislature is balancing its $1.3 billion deficit by, among other things, cutting the state’s Earned Income Tax Credit. This credit goes to low-income working citizens. By eliminating the “refundable” portion of the credit, the state will cut benefits for a family with three or more children and a parent earning $13,850 a year by $312.
The Associated Press, in a pathetic example of on-the-one-hand-on-the-other-hand journalism, reported of the tax change, “Opponents say it targets the working poor. But supporters say it is needed to help fill a $1.3 billion hole in next year’s state budget.”
People focus on the IRS and the federal government when it comes to income taxes, but state policies also have a tremendous impact on individual pocketbooks as well. The Oklahoma Legislature, this week’s slam-dunk Tax Hall of Shame winner. Give a poor-reporting assist to the AP.