Complexity, Regressivity, and Income Disparity: Self-defeating Aspects of the Earned Income Tax Credit
Rubel, Lindsay H.
Washington and Lee University -- Capstone in Shepherd Poverty Program
Earned income tax credit
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Lindsay H. Rubel is a member of the Class of 2006 of Washington and Lee University School of Law.Capstone; [FULL-TEXT FREELY AVAILABLE ONLINE]Unfortunately, the EITC [Earned Income Tax Credit] has failed to live up to its promise. The complexity inherent in the current version of the Credit has, to a certain extent, actually decreased true progressivity in marginal tax rates. Further, the underlying structure of the EITC suggests that it may actually be contributing to the problem of wage stagnation and decline among middle and lower income earners. For all of these reasons, the Earned Income Tax Credit may, in fact, be actively undermining its goals of increasing progressivity and after-tax income parity. [From Introduction]Lindsay H. Rubel