Research Report A Work Tax Credit That Supports Puerto Rico’s Working Families
Maria E. Enchautegui
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Puerto Rico eliminated its work tax credit (WC) in 2014. The credit, which was established in 2006, delivered benefits to 45 percent of all tax filers in 2013 at a total cost $124 million. The maximum credit was $450. This report assess the experience with the WC from 2007 to 2013 and suggests elements for a possible redesign that rewards and stimulates work, reduces hardship, strengthens the tax base, and offsets regressivity in ways that are consistent with current tax reform proposals in Puerto Rico.
Research Areas Economic mobility and inequality Families Taxes and budgets Immigrants and immigration
Tags Fiscal policy Immigrant children, families, and communities Families with low incomes State and local tax issues Federal, state, and local immigration and integration policy
Policy Centers Income and Benefits Policy Center