From Independent Women's Forum:
Much of President Obama’s fiscal-2015 budget request will stoke familiar partisan battles over taxes and spending. One major exception is Obama’s proposal to enlarge the Earned Income Tax Credit (EITC), a “negative tax” wage subsidy celebrated by Democrats and Republicans alike… Research by economists David Neumark of UC Irvine and William Wascher of the Federal Reserve has found that the EITC reduces poverty (in Neumark’s words) “not simply through the payment of the credit, but also through the incentives that the credit creates to work more.” Put another way: “Even before we account for the credit payment,” the EITC establishes “pro-work incentives” that “lead to more families earning their way out of poverty.”

For the full story, please visit http://iwf.org/blog/2793359/.

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