EITC and min wages-1

EITC and min wages-1 - EITC and Minimum Wages 1 Earned...

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EITC and Minimum Wages 1
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Earned Income Tax Credit What is it? Who is eligible and what are the benefits? History and usage? Economic model and behavioral responses. Empirical evidence of effects of the EITC. 2
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What is the EITC? Refundable income tax credit for low-wage workers and families Refundable means families that do not owe tax still receive the full benefit as a tax refund Credit Reduces dollar-for-dollar (vs. a deduction which reduces taxable income) Must have earned income Most receive the credit in a lump-sum form after they file. 3
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