The Earned Income Tax Credit: Targeting the Poor but Crowding out Wealth
نویسندگان
چکیده
This paper quantifies the individual, aggregate and welfare effects of Earned Income Tax Credit (EITC) in United States. In particular, we analyse labour supply saving responses to changes tax credit generosity their implications for prices welfare. Our results show that EITC is a subsidy on income savings. An increase raises force participation, reduces savings many provides insurance working poor households. The earnings inequality but increases skill premium wealth inequality. A 10% by 0.31% benefits majority population.
منابع مشابه
The Earned Income Tax Credit: Targeting the Poor but Crowding out Wealth
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3768682