Brief Investing in Work by Reforming the Earned Income Tax Credit
Elaine Maag
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The earned income tax credit (EITC) lifts millions of working families out of poverty, but provides little support to workers without children living at home. Scaling back the EITC and implementing a worker credit based on individual earnings and not contingent on having children at home could provide substantial benefits to all low-income workers, ease administration for the IRS, and encourage work for childless individuals and secondary earners. A broadly available $1,500 credit would cost around $870 billion over 10 years; scaled back options are also available.
Primary topic Individual Taxes
Research Area Current legislative proposals Earned income tax credit (EITC)