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Americans who pay no income taxes, EITC edition

Posted on October 24, 2011 by TRP

People are leeching off the tax system?

But this turns out to be fairly misleading. A new study offers a more nuanced look at the role the Earned Income Tax Credit actually plays in the U.S. economy. The EITC, remember, is a refundable tax credit that helps supplement the income of poor employed workers with children. The formula’s a bit complicated, but a worker with two kids making $16,000 a year can get up to $5,036 back in taxes. As it turns out, a stunningly large number of Americans use the program.

via Americans who pay no income taxes, EITC edition – The Washington Post.

 


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