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THE EARNED INCOME TAX CREDIT: Boosting Employment, Aiding the Working Poor

Friday, July 22, 2005

  • By: Robert Greenstein
  • Organization: Center on Budget and Policy Priorities
According to the Center on Budget and Policy Priorities an innovative tax credit that was established in 1975 for low-income working families and has long enjoyed bipartisan support, the Earned Income Tax Credit has been found to produce substantial increases in employment and reductions in welfare receipt among single parents, as well as large decreases in poverty. Research indicates that families use the EITC to pay for necessities, repair homes and vehicles that are needed to commute to work, and in some cases, to help boost their employability and earning power by obtaining additional education or training.
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