Economic Recovery And The EITC: Expanding The Earned Income Tax Credit To Benefit Families And Places
Source: Brookings Institution
The economic recovery package currently under consideration by the U.S. House of Representatives, as well as corresponding legislation before the Senate Finance committee, includes a number of tax relief provisions that would benefit lower-income workers and their families. One such provision would temporarily expand the federal Earned Income Tax Credit (EITC). The EITC - a refundable tax credit for people who work but earn low incomes - is the country's largest and most successful anti-poverty program. The EITC delivers over $40 billion dollars a year in wage supplements to lower-income workers and their families and lifts more than 4 million people out of poverty each year.