When Program Cuts Cost More Than the Programs

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Alfred Lubrano:

The Corbett administration has stopped funding a program that helped low-income working people get federal tax credits that kept them out of poverty.

The program, administered by the Department of Public Welfare for just over $500,000, also helped pay for low-income workers to have their taxes prepared free, which saves people at or below the poverty line hundreds of dollars, advocates say […]

Khadijah Jones, director of the Campaign for Working Families, said she learned – in a letter from InspiriTec in Harrisburg, a firm that processes invoices for DPW – that she’d lose her entire budget for tax work […]

Jones said she used the $300,000 from DPW last year to obtain $20 million in tax refunds and credits for clients.

Think about that for a minute. CWF takes $300,000 in state dollars and turns that into $20 million worth of purchasing power in the economy. That $20 million is going to people who are poor and likely spend most of their income. That money goes to local businesses, who contribute sales and income tax revenue to the state, and property and income tax revenue to local government. Who seriously believes cutting this program is going to save anybody any money?

This entry was posted in Economy, Social Services.

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