Brief Who Benefits from Expanding the EITC or CTC?
Subtitle
Understanding the Intersection of the EITC and CTC at the Household Level
Elaine Maag
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The Tax Cuts and Jobs Act (TCJA) missed an opportunity to help low-income childless workers, very low-income families with children, and families with young children – all groups where investments could be particularly productive. The child tax credit (CTC) and earned income tax credit (EITC) could be redesigned to lift millions of people out of poverty. Both could be highly-progressive policies designed to focus nearly all benefits on very low-income people. A small share of families could benefit from either policy change, though most families would benefit from one or the other.
Research and Evidence Tax and Income Supports Family and Financial Well-Being
Expertise Families Social Safety Net Taxes and the Economy Wealth and Financial Well-Being Early Childhood
Tags Families with low incomes Poverty Economic well-being Wealth inequality Refundable tax credits Volatility Individual taxes Federal budget and economy Kids in context Earned income tax credit Children and youth