When the big planes carrying military men and women from all over the country taxi across the runway at Bangor International Airport, there are always many people to greet them – not just the families of soldiers and National Guard men and women, but neighbors, friends and citizens. For anyone who has served in the military, there is a special thrill about seeing our servicemen and women returning safely home. They have served our country well, and we are all in their debt.
As they return to civilian life, there are many adjustments, pleasant and unpleasant. One of the latter is no doubt paying their taxes, as all of have recently done. But what will we tell them when they find out that Congress is thinking of raising their taxes, even as they have been serving their country?
That’s what the House budget resolution would do, by cutting the Earned Income Tax Credit (EITC). This vital tax-relief program, adopted under Ronald Reagan and expanded under Bill Clinton, provides a tax credit for working families, particularly those with children, that reduces or eliminates their federal income tax liability.
Regrettably, serving in the military often does not lead to a healthy income. A new study by the Bell Policy Center in Denver determined that at least 150,000 active duty military members and their families are eligible for the EITC. That number includes many families in Maine.
It isn’t just new recruits who are affected. A Marine corporal with four years experience earns about $25,000, including special pay. With a spouse and two children, the corporal is now eligible for an EITC credit of $2,250.
Cutting the size of the credit for these families is nothing short of a back-door tax increase. At a time when Congress is proposing further tax cuts for the wealthiest 1 percent of American taxpayers and creation of two new exemptions, this is unconscionable.
Military families are already under serious financial pressure. The New York Times recently reported on so-called predatory lenders who target military personnel. Desperate for cash and having few other options available, these service families sign up for loans at extremely high interest rates. Around the naval bases along the Virginia coast, more than 200 of these lenders have set up shop. Loan sharks at the gates of our military bases is disturbing enough. Can Congress seriously be considering increasing the tax burden on tens of thousands of hard-working, low-paid military men and women?
The EITC is a remarkable government program that has always enjoyed bipartisan support, and for a very good reason – it rewards work. Qualifying workers receive the benefits of the EITC – as much as $4,300 for a family with two or more kids. In all, 21 million families nationwide received $37.5 billion in EITC benefits last year. Of the 140,000 troops now stationed in Iraq, at least 12 percent quality for EITC.
Many experts say the EITC is the government’s most effective tool for lifting millions of families and children out of poverty. This program buttresses our national work ethic and efficiently puts more money into the pockets of our lowest-paid workers.
Important votes lie just ahead as budget deliberations conclude. Maine Sens. Olympia Snowe and Susan Collins are among a handful of senators who will play a crucial part in determining whether the EITC remains intact, and if other programs important to America’s low-income families, including Medicaid and food stamps, remain whole.
Congress should take off the table any proposal to cut the EITC and penalize many of our lowest-paid soldiers, sailors, airmen and marines. We as a nation have sent hundreds of thousands of men and women to fight and possibly die overseas in the last two years. Congress should do the honorable thing and leave the EITC alone.
Then we can greet the planes coming into Bangor not only with a warm welcome, but with the knowledge that our elected representatives have also kept faith with our troops.
Maynard Pushaw of South Hope is a Vietnam-era veteran and served from 1966-68. Donald G. Pushaw, his father, also of South Hope, served in nine campaigns during World War II, and was awarded the Purple Heart for combat wounds, as well as the Bronze Star and Oak Leaf Cluster.
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