Author: Shawanna Vidal BlazePublisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 142
Book Description
An Analysis of Earned Income Tax Credit
Author: Shawanna Vidal BlazePublisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 142
Book Description
The Effect of the Earned Income Tax Credit on Single Mothers' Employment Decisions
Author: William K. LennonPublisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 54
Book Description
Making Work Pay
Author: Bruce D. MeyerPublisher: Russell Sage Foundation
ISBN: 1610443942
Category : Business & Economics
Languages : en
Pages : 413
Book Description
Since its inception under President Ford in 1975, the Earned Income Tax Credit (EITC) has become the largest antipoverty program for the non-elderly in the United States. In 1998, more than nineteen million families received EITC payments, and the program lifted over four million Americans above the poverty line. Despite the rapid growth of the EITC throughout the 1990s, little has been written about how the program works or how it affects low-income families. Making Work Pay provides the first full-scale examination of the EITC, exploring its effects on income distribution, poverty, work, and marriage. Making Work Pay opens with a history of the EITC—its emergence in the 1970s as a pro-work, low-cost antipoverty program and its expansion through the 1980s and 1990s. The central chapters in the volume look at the substantial impact of the EITC on work incentives in recent years and show that the program, in combination with welfare reform and a strong economy, has led to an unprecedented increase in the employment of single mothers. In one study, researchers conclude that the EITC—with its stipulation that one family member be a wage earner—was the most important change in work incentives for single mothers between 1984 and 1996, a period when the employment rate of single mothers rose sharply. Several chapters outline proposals for reforming the program, addressing the concerns by policymakers about the work disincentives that rise as benefits fall with increasing income. Finally, Making Work Pay examines how EITC recipients view the credit and what they do with it once they get it. The contributors find that not only does EITC's lump-sum payment increase consumption but it also allows recipients to make changes in economic status. Many families use the end-of-the-year payment as a form of forced savings, enabling them to save for home improvement, a new car, or other purchases to improve their lives, and providing the extra economic cushion needed to move beyond mere day-to-day survival. Comprehensive in scope, Making Work Pay is an indispensable resource for policymakers, administrators, and researchers seeking to understand the ramifications of the country's largest programs for aiding the working poor.
Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers
Author: Bruce D. MeyerPublisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 80
Book Description
During 1984-96, welfare and tax policy changed dramatically. The Earned Income Tax Credit was expanded, welfare benefits were cut, welfare time limits were added and cases were terminated, Medicaid for the working poor was expanded, training programs were redirected, and subsidized or free child care was expanded. Many of the program changes were intended to encourage low income women to work. During this same time period there were unprecedented increases in the employment and hours of single mothers, particularly those with young children. In this paper, we first document these large changes in policies and employment. We then examine if the policy changes are the reason for the large increases in single mothers' labor supply. We find evidence that a large share of the increase in work by single mothers can be attributed to the EITC, with smaller shares for welfare benefit reductions, welfare waivers, changes in training programs, and child care expansions. We also find that most of these policies increased hours worked. Our results indicate that financial incentives through the tax and welfare systems have substantial effects on single mothers' labor supply decisions.
Single Mothers and the Earned Income Tax Credit
Author: Kartik AthreyaThe Impact of the Earned Income Tax Credit on the Educational Investments of Single Mothers
Author: Elisa M. OlivieriThe Earned Income Tax Credit and Expected Social Security Benefits Among Low-income Mothers
Author: Publisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 0
Book Description
The Earned Income Tax Credit (EITC) has been found to lead to increases in employment and earnings growth for low-educated women. That increased employment and earnings may result in a greater fraction of those women qualifying for Social Security benefits and their receiving a higher benefit in the event they do qualify. In this study, we determine the extent to which the labor supply responses to the EITC will improve the financial security of low-income women when they near retirement age. We use data from the 1993 and 1996 SIPP-SSA matched data files and the CWHS to estimate the impact of EITC expansions on employment, quarters of coverage, and earnings growth. Earlier research exploited the differential expansions in the credit for single mothers with two or more qualifying children and for single mothers with only one child. Those results, consistent with our earlier work, show that the EITC increased both employment and earnings growth of single mothers in the 5 years following expansion. We then simulate the impact of EITC expansion on the Average Indexed Monthly Earnings (AIME) amount and the Primary Insurance Amount (PIA) of a sample of low-educated women. The results show that the EITC increases the share of women who are eligible for Social Security retirement benefits by between 2% and 3%. Further, we find that lifetime earnings increase by between 6% and 17% and the AIME by a similar amount.
Helping Working Families
Author: Saul D. HoffmanPublisher: W.E. Upjohn Institute
ISBN: 0880992549
Category : Business & Economics
Languages : en
Pages : 247
Book Description
Gives an overview of the EITC and makes recommendations for changes.
Incentive Or Disincentive?
Author: Neil NabarPublisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 110
Book Description
It's Not Like I'm Poor
Author: Sarah Halpern-MeekinPublisher: Univ of California Press
ISBN: 0520959221
Category : Social Science
Languages : en
Pages : 299
Book Description
The world of welfare has changed radically. As the poor trade welfare checks for low-wage jobs, their low earnings qualify them for a hefty check come tax time—a combination of the earned income tax credit and other refunds. For many working parents this one check is like hitting the lottery, offering several months’ wages as well as the hope of investing in a better future. Drawing on interviews with 115 families, the authors look at how parents plan to use this annual cash windfall to build up savings, go back to school, and send their kids to college. However, these dreams of upward mobility are often dashed by the difficulty of trying to get by on meager wages. In accessible and engaging prose, It’s Not Like I’m Poor examines the costs and benefits of the new work-based safety net, suggesting ways to augment its strengths so that more of the working poor can realize the promise of a middle-class life.