I have begun to see signs at intersections posted by tax preparation companies announcing that you can receive up to $6,500 back from the government for one child when you do your taxes after the first of the year. I don’t know where they are getting this number. For tax year 2014, the personal exemption is $3,950, the maximum earned income credit is $3,304, and the maximum additional child tax credit is $1,000. These last two credits are refundable, meaning that some Americans can get back $4,304 that they never paid in. It is, of course, someone else’s money that they are getting back. Refundable tax credits are welfare, as I point out here. Oh, by the way Republicans love them. Real tax credits, are, of course, good, as I argue here.

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