Essays in Honor of Gerhard E. A Reply to Hirschfeld et al.
In addition, recent ground-breaking research suggests the income from these tax credits leads to benefits at virtually every stage of life. For instance, research indicates that children in families receiving the tax credits do better in school, are likelier to attend college, and can be expected to earn more as adults.
Numerous studies show that working-family tax credits boost work effort.
The EITC expansions of the s contributed as much to the subsequent increases in work among single mothers and female heads of households as the welfare changes of that period, extensive research has found. And, by boosting the employment and earnings of working-age women, the EITC boosts the size of the Social Security retirement benefits they ultimately will receive.
In addition, the research shows that by boosting the employment of single mothers, the EITC reduces the number of female-headed households receiving cash welfare assistance. The EITC may also improve the health of infants and mothers, research indicates.
Infants born to mothers who could receive the largest EITC increases in the s had the greatest improvements in such birth indicators as low-weight births and premature births. Moreover, research suggests that income from the EITC and CTC leads to improved educational outcomes for young children in low-income households.
Children whose families receive more income from refundable tax credits do better in school, are likelier to attend college, and likely earn more as adults; they also are likelier to avoid the early onset of disabilities and other illnesses associated with child poverty, which further enhances their earnings ability as adults, some research suggests.
These working-family tax credits lifted 9. The magnitude of these effects is large: Millions of families are brought above the poverty line, and estimates of the effects on children indicate that this may have extremely important effects on the intergenerational transmission of poverty as well.
Taking all of the evidence together, the EITC appears to benefit recipients — and especially their children — substantially.
To claim the credit, a taxpayer must have earnings from a job. The credit rises with earned income until reaching a maximum which varies by the number of qualified children and then phases out as income rises further. Research strongly suggests that low-income families do not understand how much of their tax refund comes from the EITC or the CTC, but they do understand that if they work they can qualify for significant tax-based benefits.
The EITC is particularly effective at encouraging work among single mothers working for low wages. Single mothers are the group most likely to be eligible for the EITC because they tend to have low earnings and qualifying children.
As Figure 1 shows, single mothers experienced a marked increase in paid employment following the EITC expansions of the early s, relative to married women and single women without children. In addition, women who were eligible to benefit the most from those EITC expansions apparently had higher wage growth in later years than other similarly situated women.
The EITC expansions of the s induced more than a half a million families to move from cash welfare assistance to work, research shows. Higher Social Security benefits, in turn, reduce the extent and severity of poverty among seniors. Changes in health insurance coverage did not seem to be a primary explanation for these improved health outcomes.
They also are more likely to finish high school and go on to college. In addition, larger tax refunds make college more affordable for low-income families with high-school seniors and are associated with significant increases in their college attendance.
A recent working paper examining data from before and after changes to federal and state EITCs finds that children receiving larger EITCs tend to do better academically in both the short and long term. Higher test scores, particularly in math. Larger EITCs are linked to improved test scores in the year of receipt for both elementary and middle-school students.
Higher high-school graduation rates. Higher college attendance rates. The size of these effects is noteworthy.Oct 01, · Will Education Reduce Economic Inequality?
It’s possible, but don’t count on it, because the education system may have increased inequality. Some years back. Significant Energy E vents in Earth's and Life's History as of Energy Event.
How the EITC and CTC Work. The EITC, a federal tax credit for low- and moderate-income working families and individuals, is designed to encourage and reward work, offset federal payroll and income taxes, and raise living standards. The Wall Street Journal reported that economic inequality was never really a problem, and even if it is we no longer have to worry about it. These conclusions are . Introduction and key findings. Income inequality and slow growth in the living standards of low- and moderate-income Americans have become defining features of today’s economy, and at their root is the near stagnation of hourly wage growth for the vast majority of American workers.
Timeframe. Significance. Nuclear fusion begins in the Sun. c. billion years ago (“bya”) Provides the power for all of Earth's geophysical, geochemical, and ecological systems, with .
Evangelii Gaudium, Apostolic Exhortation of Pope Francis, 1. The joy of the gospel fills the hearts and lives of all who encounter Jesus. Those who accept his offer of salvation are set free from sin, sorrow, inner emptiness and loneliness. This entry presents the evidence on global economic inequality.
It considers economic history and how global inequality has changed and is predicted to continue changing in the future. The downside of this approach is that we can only go as far back in time as household surveys were conducted.
Sep 25, · Commentary and archival information about income inequality from The New York Times. Economic View How Rising Inequality Has Widened the Justice Gap. Nov 23, · Economic Inequality. Sponsored by: America’s president writes for us about four crucial areas of unfinished business in .