Policy Watch: Tax Credits for Low-Income Workers with Children
- (pp. 201-212)
AbstractThe most important tax credits available to low-income households with children are the earned income tax credit (EITC), the child tax credit, and the child and dependent care tax credit (hereafter, child-care credit). Only the EITC and the child-care credit exist in current law in the United States. This note will discuss some equity and efficiency implications of four commonly stated purposes of these credits within the tax/transfer system: greater progressivity, adjustments for the presence of children, greater choice among goods and services, and greater work incentives for low-income individuals.
Citation1990. "Policy Watch: Tax Credits for Low-Income Workers with Children." Journal of Economic Perspectives, 4(3): 201-212. DOI: 10.1257/jep.4.3.201
- 911 General Welfare Programs
- 323 National Taxation, Revenue, and Subsidies