I'd argue that it does more to not promote dual income households or socio economic climbing due to peoples reliance on it and it's low phase out limits. For some reason people would rather NOT earn 10-20k working part time because it would prevent them from getting back 3-6 grand at tax time, 3-6 grand they get for doing absolutely nothing in some cases...You want to keep it and make it non refundable, I'm fine with that, I'm not fine with people receiving more at tax time back then they ever realistically paid in.
It's the same with things like mortgage interest etc. People say they wouldn't pay off their house early because they will lose the tax benefit, essentially getting back 25% from the government for paying 100% of the interest to the bank...even when it no longer makes sense to itemize deductions they still claim they won't pay it off because of the tax deduction. *I understand the invest the difference, low interest etc argument and I fully agree with it, the point is most people don't think that way, it's more about getting money back from the government, and yes I am totally OK with this going away too.
The fact that LARGE chunks of military pay isn't included in the maximum threshold calculations and you have people who normally wouldn't qualify for the credit receiving it, thereby aiding a group of people that probably least need the aiding due to the relatively stable nature of military pay and provided housing and you are adding to the deficit (yes in a small part) that is pushing things like troop cuts, reforms, lower raises etc in the military community. How much is that TV worth when it could cost a fellow soldier their job down the line? And YES it is TOTALLY stupid that this should be a cause of concern when we are BILLIONs over on weapon systems designs but the fact of the matter is that the government is looking more towards compensation reform and cuts to make up sequestration money instead of stopping things like the purchase of weapons and parts that are no longer wanted or needed.
As I said, if it wasn't going to something frivolous, and was actually going to providing a cushion in case said service member gets cut in the draw down, I wouldn't have an issue with it. But lets face it, we ALL remember the crazy spouse freakouts over the potential missed paychecks during the government shutdown in 2013. All of them blowing up the boards because they wouldn't be able to meet one months bills if the government didn't pay them etc.
FULLY agree with good role models etc. Most people don't want to listen to good advice though, there was a whole other thread on here relating to how military folk have tried to offer help in the way of advise or counseling and the reactions that they have received.
