Food for Thought on Tax Day
April 17, 2012 2 Comments
As you scurry to finish your taxes in advance of today’s deadline (or gloat that you have already spent your refund), consider for a moment that there will be many people who receive a tax credit because, even though they are working, that job does not pay enough to raise them over the poverty line. As noted in this blog post from Bread for the World, “In 2010, 10.7 million people with jobs lived below the poverty line. A full-time minimum-wage earner makes only about $14,500 a year.” The Earned Income Tax Credit helped lift 5.4 million of these people above the poverty level, but often, depending on where they live, this is not enough to allow them to meet the Self-sufficiency Standard, which defines the amount of income necessary to meet basic needs (including taxes) without public subsidies (e.g., public housing, food stamps, Medicaid or child care) and without private/informal assistance (e.g., free babysitting by a relative or friend, food provided by churches or local food banks, diapers from a diaper bank, or shared housing).
The family types for which a Standard is calculated range from one adult with no children, to one adult with one infant, one adult with one preschooler, and so forth, up to two-adult families with three teenagers. The Self-Sufficiency Calculator for various states are available on the internet–for example, you can find the calculator for Washington State here, for Colorado here, and for DC here. You can also look up the most recent tables for your state here. In each case, the Self-sufficiency Standard is much higher than the poverty level, and demonstrates how much many people with paying jobs must rely on “safety net” programs such as food stamps, housing assistance, and various other forms of assistance to make ends meet.
In the call for lower taxes, many of these same government programs that millions of people rely on are the first programs to be cut. If your only concern is the bottom-line tax number, one way to lower your taxes yourself is to donate to private charities, which can be deducted from your taxes. As public services are cut, the need is for private assistance increases dramatically. Consider lowering your taxes for next year by donating to a charity today. Some things to think about as you file your taxes.