The Effects of the EITC and Recent Reform
Abstract
In this paper, I first summarize how the U.S. Earned Income Tax Credit (EITC) operates and describe the characteristics of recipients. I then discuss empirical work on the effects on hours of work and marriage, and problems of compliance with the tax system. I then simulate the effects of the recent expansion of the credit for families with three or more children that were part of the American Recovery and Reinvestment Act of 2009. I also reexamine the key assumptions of past work on the labor supply effects of the EITC. Finally, I briefly discuss the likely effects of further expanding the credit to non-custodial parent, as has been recently done in two jurisdictions.Download Info
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Paper provided by Harris School of Public Policy Studies, University of Chicago in its series Working Papers with number 0910.Length:
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:har:wpaper:0910
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Keywords: Earned Income Tax Credit; compliance; simulate; labor supply; American Recovery and Reinvestment Act of 2009; credit;References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Alexander M. Gelber, 2010.
"Taxes and Time Allocation: Evidence from Single Women,"
2010 Meeting Papers
1031, Society for Economic Dynamics.
- Gelber, Alexander M. & Mitchell, Joshua W., 2009. "Taxes and Time Allocation: Evidence from Single Women," MPRA Paper 19148, University Library of Munich, Germany.
- Alexander M. Gelber & Joshua W. Mitchell, 2009. "Taxes and Time Allocation: Evidence from Single Women," NBER Working Papers 15583, National Bureau of Economic Research, Inc.
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