JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Happy 45th Anniversary to the Earned Income Tax Credit. Thoughts on One of the Most Expensive Costing Credits in the U.S. Tax Law
Author(s): Richard Lahijani
Citation: Richard Lahijani, (2020) "Happy 45th Anniversary to the Earned Income Tax Credit. Thoughts on One of the Most Expensive Costing Credits in the U.S. Tax Law," Journal of Applied Business and Economics, Vol. 22, Iss.4, pp. 97-102
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The earned income tax credit (“EITC”) or what was known as the “work bonus plan” was originally enacted as part of the Tax Reduction Act of 1975 (Pub. L. 94- 12) . At the time, the law was intended to be enacted on a temporary basis to assist low income families with children. However, over its 45 year history, this credit has evolved and been amended numerous times by different presidential and congressional administrations in efforts to improve it. This article will explore the legislative history of this credit, the original intent, and whether the law has had positive or negative implications for American taxpayers.