The value of the credit has increased to $2,000 for the 2018 tax year, and the income thresholds at which it phases out have risen tremendously. Effective 2018, the income thresholds for eligibility have increased to:
- $200,000 for single tax filers.
- $400,000 for married couples filing jointly.
This is FANTASTIC news because in the past, the Child Tax Credit was only $1,000, and was only given to those who earned at most $75,000 as an individual and $110,000 as a married couple. For every $1,000 you make over these two income thresholds, the credit gets reduced by $50. In other words, in the past, if you make $130,000 as a married couple or $95,000 as a single person, you no longer get any of the $1,000 tax credit!
Understanding The Child Tax Credit
Let’s discuss with the government was so discriminatory before 2018. What does it mean when only married couples making $110,000 or less, or singles earning $75,000 or less can get a full $1,000 tax credit? Logic would dictate the following three reasons:
1) The government only favors middle-to-low income couples who have kids.
Given that the majority of married couples in America make less than $110,000, the government is not as discriminatory as one may think. However, does being less discriminatory mean that you are not discriminatory? Hell no. Let’s say you are an Asian American restaurateur who welcomes every single ethnicity into your restaurant except for Caucasian Germans because they remind you of World War II. You are still a damn racist. The government practices socio-economic discrimination which is wrong. Please understand this, even if you may be a beneficiary.
2) The government only wants middle-to-low income people to have kids.
If the government wanted to help people of all income levels, they would extend the tax credit to all people. For some reason, $110,000 is the income maximum which is befuddling. People do realize $110,000 goes a lot farther in Austin than it does in New York City right? What happens when only middle-to-low income people have kids? We create a very non-diverse society that contains even less higher income children.
What happens if you are of very low income, say $15-$25,000 a year and see a government incentive of $1,000 per child dangling in front of you? If you a normal, horny, short-term focused person, you will likely at least consider having several kids. If you have five kids, you get $5,000, which is 20-33% of your entire annual income of $15-25,000! You’ll have a nice family, look for more ways to take advantage of the government, and probably think about NOT spending the entire $5,000 on your five kids, but skimming a lot of it for your own use. Can you see the cycle of poverty forming yet?
3) Because kids are expensive, the government wants to help families lessen their cost burden.
If kids are expensive, and you are barely making enough to live a comfortable life and save for your retirement, having a kid, let alone several kids is probably not a good idea. Yet, the government provides mixed messages to the American people by saying we will help you with your child expense, in order for you to have more kids! The world has over 140 million orphans, yet we are encouraging more people to have kids with a $1,000 tax credit?
Let’s Get Busy Baby!
There’s no doubt in my mind having a family is a beautiful thing, provided your kids are not duds. It’s inherent for many of us to want to have children of our own despite overpopulation being the #1 reason for the destruction of our planet. It’s our free right to populate the Earth however we please. I just seriously think the government needs to stay out of our personal lives and stop sending wrong signals to the American people. Leave us alone, and let us discover the world for ourselves!
Eradicate the $1,000 tax credit which is discriminatory to the millions of American families who make over $110,000 a year. Instead, raise the adoption credit from $13,360 to $14,360 and encourage more people to think about adoption as a compliment or substitute to raising a family. At least we will be helping five things at the margin: a child in need, a lower income family from detonating their finances, a person or couple whose dream it is to start a family via adoption, taxpayers from having to pay more taxes to fund the irresponsible, and our country’s balance sheet!