Should today's fastest growing federal assistance program be roped in?

The Earned Income Tax Credit (EITC) was enacted in 1975 to provide cash to low-income workers with children so they would not be taxed into poverty via Social Security tax obligations and so they would have incentive to work more. However, instead of just exempting such people from the payment of So...

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Bibliographic Details
Published in:The American enterprise (Washington, D.C.) D.C.), 1996-07, Vol.7 (4), p.78
Main Author: Yin, George K
Format: Magazinearticle
Language:English
Subjects:
Beneficiaries
Budget deficits
Costs
Earned income
Earned income tax credit
Income taxes
Low income groups
Social security
Social security taxes
Tax credits
Tax refunds
Tax returns
Taxable income
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Summary:The Earned Income Tax Credit (EITC) was enacted in 1975 to provide cash to low-income workers with children so they would not be taxed into poverty via Social Security tax obligations and so they would have incentive to work more. However, instead of just exempting such people from the payment of Social Security levies, Congress created a transfer program, administered by the IRS, that sent such workers a check for what was withheld from their pay, and the program is in danger of being stopped.
ISSN:1047-3572