"Refundable" Tax Credit
Refundable tax credits. Sounds nice. The words tax and refund in one sentence. Kind of rolls off the tongue doesn't it? And, who wouldn't want a tax refund? What about a tax credit? We have always known, since Congress passed the 16th Amendment to the Constitution, that taking people's money away from them and then giving it back in dribbles and drabs if they do certain things is an extremely powerful method of behavior modification and is the reason that Congress will NEVER pass the Fair Tax . How many of us installed new insulation in our homes back in the 80's when there was an "Energy Tax Credit" to do so? Yeah, we got to keep up to $800 as a credit . Never even sent it to the feds. And if we had already sent it to them (in the form of payroll deductions), we got it all back when we filed our tax return the next year. That is what a credit is... a credit against taxes that you owe. Well, what if you don't owe any taxes? That is not hard to imagine ...