Tax credit, food-stamp increase take effect today
Millions of Virginia will begin to feel the effects of the federal economic stimulus package today, as tax credits start to show up in paychecks and benefits rise for food-stamp recipients.
A tax credit amounting to $400 a year for most workers will benefit more than 2.9 million Virginians. The credit will reduce the taxes withheld from most workers' paychecks by about $13 per week this year and $7.70 next year. Today is the deadline for employers to begin implementing the credit as part of the American Recovery and Reinvestment Act.
The law, proposed by President Barack Obama and adopted by Congress earlier this year, also mandates a 13.6-percent increase in food-stamp benefits that takes effect today. In Virginia, the increase will benefit more than 608,000 people living in more than 280,000 households. Virginians will receive an estimated $355 million in additional benefits over the next five years.
The maximum monthly benefit for a four-person household will increase by $80 a month, from $588 to $668 under the change. The typical household receiving food stamps will see an increase of about $32 a month.
The program also will get a new name today -- the Supplemental Nutritional Assistance Program, or SNAP. The change will not affect the benefits of program participants.
-- Michael Martz
Reader Reactions
Opinion8d, I’m quite familiar with WIC.
Most poor people are not pregnant or kids under the age of 5. WIC provides supplemental food (not all food) - mainly formula, milk, juice, certain cereals - so babies are born reasonably healthy and nourished reasonably well in their first years of life.
WIC is a good idea and I support it.
Phil, if you have more kids on welfare, you don’t get more benefits. You have a lifetime eligibility of 5 years, total, to be on welfare. That’s it.
Justme, most people do not qualify for medical assistance - and medical assistance is not for “the welfare system”, but is a separate benefit. The two programs are not connected.
Most poor people are not eligible for government healthcare of any sort.
“Welfare” - general assistance - is available for a lifetime max of 5 years. You can’t live on welfare all of your life even if you really really wanted to.
WIC is only available if you are a pregnant or nursing mom, or an infant.
Food stamps are qualified by income. The average benefit is 128 per month per person. That’s not a lot.
Utility assistance is separate and often not available.
The rate of people who should not be on welfare is 2%, per audits that were trying to show abuse - certainly not 75%. People who are on welfare are overwhelmingly people who need help.
Most benefits are not available to illegal immigrants. Most benefits require an SSN.
Personally, I think 688 is a pretty modest amount to feed a family. Our food bills are several times that much.
Where do I get my info? From the people who actually work with the recipients of these programs.
I was reading alot of you readers comment and some I agree with and some I don’t to a certain degree. I’m a single mother of 3 girls 20, 16, and 3. I was working 2 jobs and making sure my oldest stayed in college. Well I was recently laid off my full time job. I was also denied my unemployment due to I worked a part time job also(2.5 hours 5 days a week). But I’m appealing that decision because I’ve worked all my life and that’s what my taxes are for. Anyways to make along story short I applied for foodstamps and I did qualify. I also don’t like to see people abuse the system. And trust me they will get caught!!! But please don’t down me because I don’t want my kids to suffer and go hungry because the economy is so messed up. I’m trying my best to give them all they deserve. And if that means standing in line at my local grocery with my cart filled with the food we need then so be it. I don’t call it an “Handout” (girldevl) For me it a blessing….
Jer1234, I know the fact. The additional money coming is because the credit, to offset payroll tax, has been increased.
The difference is due to a $400 per year tax credit for workers. As is noted in the article above.
The money is not going to be due on 4/15/10. A credit reduces your taxes. You don’t have to repay it.
You need new tax advisors - ones that actually know the tax law.
VirginiaGal 2 I have no clue where you are getting your information. There is a Healthcare company right here in Richmond called Virginia Premier Health Plan. They only provide benefits to those who are on the welfare system. These benefits include Healthcare, dental and counsling. Benefits can go up to the age of 18. TANF, WIC, Food Stamps, Utility assistance etc are all government programs. These programs were put in place to assist people in the time of need but because so many have found that the system takes care of them as long as they don’t work. Get the correct facts before you run on about stuff. You can go to this website and explains everything: http://www.childwelfare.com/virginia.htm
75% of those on welfare are abusing the system. We allow illegal immigrants benefits.
Yes I tried for a little assistance because my priority is paying my mortgage and keeping the lights and water running. You tell me how a household goes from 110,000+ a year to 30,000+. You have no clue what so many families that spouse or both worked at Quimonda or Circuit City are dealing with. Many of these were the bread winners in the house. Thank God I carry the benefits for my family and I have a stable job.
So yes I am little upset at the fact that they raised the food stamps up. What family need $688 a month to eat on.
This is disgusting to me. So many people, including myself, work hard to make a living. Whether it is returning to school or taking on a second job, we don’t turn to the government for a handout…and can’t. Again, people are rewarded for bad choices. Why better yourself when you can sit back and collect for free? Sick, it makes me sick.
citycynic I too made the mistake of “running” in WalMart. As I walked in to pick up my couple items I looked around and said to myself, “Oh no, I forgot today was check day!“ Luckily I only had a few items so I could go through self checkout. The other lines were full of people with 2 carts each with only the best pre-made frozen foods and other costly “necessities”. I really hate forgetting about check/stamp day.
Virginia Girl2 you might want to check your facts. The amount of money coming to you is a lowering of the money withheld for tax purposes. Your same Tax rate will be due at the end of the year. No matter how the Socialist cloaked this you will have to pony up for your April 15, 2010 reponsibility. My and several othr tax attorneys are recommending taking additional money out each paycheck to cover for it. It is a smoke and mirror program that will bite people next year. Count on it.
Virginiagal2: let me enlightenyou: A single mother I know living in Whitcomb Court gets gets free government housing (no mortgage), free day care for her three fatherless kids (social services),free food
(WIC, free school lunch), and medical care (FAMIS, Medicaid). She does not work and never has. She owns a car, gets her hair and fake nails done weekly, and she and her kids wear designer clothes with a pair of designer shoes to match every outfit. Taxpayers like me foot the bill. She bragged about Obama winning the election because now “she and her kids will be better off.“ Darned right I begrudge her. And the thousands more jsut like her.
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