Make Work Pay Again: An Argument for Expanding the Earned Income Tax Credit

Report | May. 2022

Make Work Pay Again: An Argument for Expanding the Earned Income Tax Credit

Debipriya Chatterjee

Summary:

The Earned Income Tax Credit (EITC) is the largest and most important means-tested transfer program in the United States. Since its inception in the 1970s, the EITC, a refundable tax credit that works by offsetting workers’ income tax liabilities, has proven to be an effective and impactful anti-poverty tool.

This report takes a deep dive into the EITC program—the design of the tax credit, its historical arc, the gaps in its reach and implementation—and provides recommendations for improvement. It is encouraging that many of these recommendations have been echoed by city and state elected representatives.

Issues: Economic Mobility & Security, Workforce

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