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LETTER: Tax credit means poor pay no income taxes

December 2, 2017

I enjoyed reading the article “No enthusiasm for cuts among those not taxed” by Cecil Bohanon and Nick Curott in the Indianapolis Business Journal [Nov. 20]. 

An additional note that I have never heard mentioned on the topic is the impact of refundable earned income tax credits. I don’t think most people are aware that many low-income individuals not only pay no federal income taxes—yet they actually receive a refund.

I have to admit that, even though I have a degree in accounting, I did not realize this until I had volunteered several years for the Volunteer Income Tax Assistance program.

I think most people do not realize the difference between Social Security/Medicare, which everyone pays, and income taxes. In my experience, most people think they do pay taxes because they do not understand the difference.

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Mikala Muller

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