AIRSCOP – Feb 28, 2014

That the tax code is used to try and redistribute wealth is unquestionable.  The varying levels of effectiveness is something that is very rarely studied and could be debated long and hard.

One item is the “Work Opportunity Tax Credit”.  This gives 40% of the first $6,000 of earnings as a tax credit to the employer.  The Employee must meet a number of criteria.  They must work at least 400 hours and must be deemed eligible based on being a “qualified” member of a family receiving Temporary Assistance for Needy Families, food stamp recipients, veterans, ex-felons, residents of empowerment zones or enterprise communities, vocational rehabilitation referrals and summer youth employees.

How the employer determines if someone is eligible and the paperwork to document their eligibility must be a nightmare and for what?  The Inspector General of the Labor Department concluded that the program simply provided federal funds to employers who would have hired the employees anyway.  So why does it still exist?


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