Senior Fellow Eugene Steuerle examines principal sources of concern about the Earned Income Tax Credit (EITC) regarding the credit's impact on work effort and the extent of noncompliance. His conclusions: (1) All transfers and taxes distort some choices, and the EITC is no exception. The EITC can be best assessed against alternatives that attempt to help low-income households and workers, not as a stand-alone provision. (2) As currently designed, the EITC cannot be fully enforced by the IRS and, to deter abuse, must either be supplemented by further restrictions or be restructured.