Econ essay (3).docx - Hu 1 Abby Hu Patricio Dominguez...

This preview shows page 1 out of 3 pages.

Hu 1 Abby Hu Patricio Dominguez Rivera Discussion Section 105 4/21/17 Word count: 985 Economic inequality is one of the defining challenges of this generation. Although people often turn to minimum wage reform to bring families up to a livable wage, this has proven complicated as it often leads to rises in unemployment. This has led many to seek other solutions to this complex issue, such as Earned Income Tax Credits (EITCs). These are tax credits (a percent of annual income given back to workers in the form of tax refunds) given to low income workers, focusing mainly on families. The amount you receive depends on your annual income, marital status, and number of children. Many praise this program because it incentivizes work, gives money back to low-income workers and avoids the job loss that rises in minimum wage often sees. So far it has raised 4.9 million people (including 2.7 million children) up out of poverty and, in general, this program increases employment by incentivizing working more often. Currently, there are 47.5 million people living below the poverty line, including 23.5 million children. We need to find a way to help these low-income workers without damaging the industry they work in or the economy as a whole, and EITCs gives us that opportunity. By granting these tax credits to families in need, we’re able to create greater economic security that help to raise these children in a more stable environment and give them a chance at a better future. These graphs represent EITC’s effect on two different labor markets. The first is for a single mother. For her, the tax credit increases the amount of money that she will make each time she works and so she chooses to work more often, increasing labor supply. This is the most
Image of page 1
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern