Earned Income Tax Credit

The Earned Income Tax Credit (EITC) provides a guaranteed annual income for low-income families in the form of a negative income tax (i.e., a family can receive a credit without owing taxes). The EITC resonates well with contemporary U.S. sensibilities because it targets working families with low and moderate incomes (rather than those who are not working) and because it minimizes any work disincentive. Should the EITC be expanded and thereby draw even more families out of poverty? For more information, consult this Urban Institute report.