Abstract

http://ssrn.com/abstract=1082145
 


 



The New Earned Income Tax Credit: Too Complex for the Targeted Taxpayers?


Francine J. Lipman


University of Nevada, Las Vegas - William S. Boyd School of Law

James E. Williamson


San Diego State University - College of Business Administration


Tax Notes, Vol. 57, No. 789, 1992

Abstract:     
In this article, the authors examine the present administrative system for the earned income tax credit (EITC) especially the refinements resulting from enactment of the Omnibus Budget Reconciliation Act of 1990 (OBRA). After describing the problems created by the complexities of the new EITC, the authors conclude that the present system is not working well. They propose that Congress reform the law so that the credit can be used to reduce an employee's liability for Social Security taxes, and refund any excess credit through an addition to take-home pay. The authors believe that the proposed EITC could be administered through employers' payroll systems, thus eliminating the necessity of filing tax returns for many taxpayers who otherwise would not be required to file. They conclude that another benefit may result from this proposal: The impetus and staging for a system that would ultimately transfer the responsibility for income tax collection and refunds for many individuals with uncomplicated incomes from the taxpayer to more impartial providers of the income, i.e., employers, banks, etc. Congress could eliminate the filing requirement for many taxpayers who have no income other than wages.

Number of Pages in PDF File: 31

Keywords: earned income tax credit, working poor, low-income taxpayers

JEL Classification: H24, I31, J18, K34, J58, J38

Accepted Paper Series


Download This Paper

Date posted: January 10, 2008  

Suggested Citation

Lipman, Francine J. and Williamson, James E., The New Earned Income Tax Credit: Too Complex for the Targeted Taxpayers?. Tax Notes, Vol. 57, No. 789, 1992. Available at SSRN: http://ssrn.com/abstract=1082145

Contact Information

Francine J. Lipman (Contact Author)
University of Nevada, Las Vegas - William S. Boyd School of Law ( email )
4505 South Maryland Parkway
Box 451003
Las Vegas, NV 89154
United States
James E. Williamson
San Diego State University - College of Business Administration ( email )
School of Accountancy
San Diego, CA 92182-8230
United States
619-594-6021 (Phone)
HOME PAGE: http://www.sdsu.edu
Feedback to SSRN


Paper statistics
Abstract Views: 845
Downloads: 118
Download Rank: 139,783

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.266 seconds