Abstract

This article argues that states that do not currently have a state-level Earned Income Tax Credit (EITC) would benefit by adopting such a program. Relying on extensive literature, the article concludes that a state-level ETIC can effectively reduce poverty, especially among children; enhance employment by attracting new entrants into the labor market; reduce the regressive nature of the tax system; and bolster the economies of areas with high concentrations of poverty. This article estimates the costs for each state without a current program for fiscal year 2013. Overall, it argues that this program, which is widely supported by many interests, can benefit states greatly in simultaneously achieving several social policies with relative administrative ease.

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