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  5. Policy Watch: Tax Credits for Low-Income Workers with Children

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

Policy Watch: Tax Credits for Low-Income Workers with Children

  • C. Eugene Steuerle
Journal of Economic Perspectives
vol. 4, no. 3, Summer 1990
(pp. 201–212)
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Abstract

The most important tax credits available to low-income households with children are the earned income tax credit (EITC), the child tax credit, and the child and dependent care tax credit (hereafter, child-care credit). Only the EITC and the child-care credit exist in current law in the United States. This note will discuss some equity and efficiency implications of four commonly stated purposes of these credits within the tax/transfer system: greater progressivity, adjustments for the presence of children, greater choice among goods and services, and greater work incentives for low-income individuals.

Citation

Steuerle, C Eugene. 1990. "Policy Watch: Tax Credits for Low-Income Workers with Children." Journal of Economic Perspectives, 4 (3): 201–212. DOI: 10.1257/jep.4.3.201

JEL Classification

  • 911 General Welfare Programs
  • 323 National Taxation, Revenue, and Subsidies
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