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Image I go to work this morning to find my old bunkmate in my office using my computer. We mutter pleasantries & she tells me she bought a car. In the process of her telling me a long, convoluted story about the purchase of said car, she lets it slip that she allows her childless best friend to claim one of her children on her income taxes. When I asked why she would do such a thing, she responds that up until this year you could only claim 2 children for Earned Income Credit, she has 3 children, so why let one go to waste when her friend could use the tax break & also qualofy for EIC. The friend gives her $1000.00 & keeps the rest, for the use of her kid. This year the child limit was increased to 3 kids, she figured it out, even with claiming the additional child, it wouldn't net her what she gets out of her friend. In previous years her friend kept about $300 after giving the real mother her $1000, this year though, she keeps almost $3000 for a kid that is not hers & she does not support. When I pointed out that they were committing fraud, she asked me how? She doesn't think they are doing anything wrong, it is only the Governments money anyhow. I pointed out to her that the Government doesn't have money, she is taking my money & people like me, who pay in all year & have to pay in some more come April. She was nonplussed, didn't really seem to care.

After reading bits & pieces of Mikes latest blog about Obama having to raise taxes on the middle class & how it is inevitable as the Government cannot cut pork, social programs, etc. How he has always attacked with saying I have the "I got mine" attitude & all the stories of fraud are "urban legends", I had to share this story. If this one person is working the tax system, how many others are doing the same thing? I know in my workplace I can't count on 1 hand how many I know who have cheated & lied on their tax returns to get more money than they should be entitled to, meaning I know there are more than 5 (they do like to brag). If the tax codes are reworked, I do hope the EIC taxes the same hit I do. If my taxes go up, EIC benefits should go down. But, before Obama breaks another "promise" & raises our taxes again, he should look harder at pork spending, ear marks, social programs (not Medicare), etc....If it's gonna hurt, it needs to hurt us all.