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Redistribution and Tax Expenditures: The Earned Income Tax Credit

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  • Eissa, Nada
  • Hoynes, Hilary

Abstract

This paper examines the distributional and behavioral effects of the Earned Income Tax Credit (EITC). We chart the growth of the program over time, and argue that several expansions show that real responses to taxes are important. We use tax data to show the distribution of benefits by income and family size, and examine the impacts of hypothetical reforms to the credit. Finally, we calculate the efficiency effects of marginal changes to EITC parameters.

Suggested Citation

  • Eissa, Nada & Hoynes, Hilary, 2011. "Redistribution and Tax Expenditures: The Earned Income Tax Credit," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(2), pages 689-729, June.
    • Handle: RePEc:ntj:journl:v:64:y:2011:i:2:p:689-729
    DOI: 10.17310/ntj.2011.2S.10
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    18. Eissa, Nada & Hoynes, Hilary Williamson, 2004. "Taxes and the labor market participation of married couples: the earned income tax credit," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1931-1958, August.
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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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