The federal Earned Income Tax Credit (EITC) has become one of the United States’ most effective programs for combatting poverty experienced by low-income working families. The EITC has garnered broad bi-partisan support, in large part because it encourages and rewards work. In 2015, low-income working families received an average EITC of $3,186, allowing them to purchase essential goods and services which are otherwise out of reach. These include home and vehicle repairs; additional education or training to increase earning power; and other necessities such as child and health care.
A total of 26 states have instituted their own EITC in addition to the federal version. Currently, the Missouri legislature is considering a state-level EITC, which would have positive and far-reaching impacts on working families, especially those with children. This brief highlights how the EITC helps counteract institutionalized inequalities by lifting people out of poverty, improving educational and health outcomes, and driving economic growth in local communities.
Click below to download the policy brief.
Read the other briefs in this series:
Food for Thought: Food insecurity undermines learning outcomes and academic success
This policy brief was produced by the Clark-Fox Policy Institute and the Center for Social Development.