The earned income tax credit (EITC)

The Earned Income Tax Credit (EITC) is the amount of money that persons who work and have a dependent child can have subtracted from their income tax, or have refunded to them if the credit is larger than their tax liability. This paper gives a history of the credit, discusses recent changes in law that index the credit to price inflation, describes how the credit is derived, compares the credit with other welfare programs, and provides summary statistics on the credit.,Abstract -- Introduction -- History. Work Bonus Plan ; Passage of the EITC ; Extension of the EITC (1975-1977 Laws) ; Permanent Status for EITC and Rise in Maximum Credit (1978 Law) ; Treatment of EITC by Benefit Programs ; Rise in Maximum Credit (1984 Law) ; Indexation of EITC and Rise in Maximum Credit (1986 Law) -- Eligibility -- Benefits. Levels Until 1987 ; 1987 and Thereafter ; 1987 Benefit Levels ; Comparison With Other Programs -- Data -- Appendix A: Summary Information on the EITC and Other Welfare Programs.,Carmen Solomon, Analyst in Social Legislation, Education and Public Welfare Division,CRS 86-1031 EPW,"December 12, 1986.",SuDoc# 14. 18/3