Refundable credits would hit their heyday if combined with a tax reform that ended individual tax payment of income under $100,000 ($50,000 for individuals) - the threshold is adjustable - and turned tax credits into adjustments to payroll taxes or corporate or business income taxes (of sole proprietors or partnerships). If the two were linked, credits could be increased and used to entirely replace government programs - provided the private alternative was as effective. For example, disability and retiree medical insurance may suddenly be done privately if this led to not paying these taxes. The entire student loan operation could be transfered to an employment based program with companies assuming loans from banks when they hire a new employee - or even making them directly and hiring bright students before they finish their degrees. The EITC and any VAT prebate could be significantly increased to living wage levels - provided the tax rate were increased and the deductibility of wages ended. On the local level, elementary and secondary schools could be financed with tax expenditures, either by employees designating their preferred education provider or by having employers give vouchers to employees and crediting the expense on their taxes. There could also be a credit for hiring welfare recipients and sending them to adult education classes while on salary and taking both costs as a tax credit. This adds a libertarian twist, as huge portions of government spending are transferred to tax expenditures.