9 Pages Posted: 10 Jan 2008
In this article, the authors reply to Professor Robert Moore's economic analysis of several proposals to redesign the earned income tax credit (EITC). (See Tax Notes, July 5, 1993, p. 105.) Moore suggested that the proposed design changes could result in severe work disincentives. Using the new expanded EITC in their examples, the authors demonstrate that the targeted taxpayers, because of lack of information and choice in the workplace, may not react to the EITC in the way economic models predict.
Keywords: working poor, earned income tax credit, work incentives, work disincentives
JEL Classification: A13, D63, D10, H23, H24, H31, I31, I38, I32, J18
Suggested Citation: Suggested Citation
Lipman, Francine J. and Williamson, James E., Recent Proposals to Redesign the EITC: A Reply to an Economist's Response. Tax Notes, Vol. 62, No. 1175, 1994. Available at SSRN: https://ssrn.com/abstract=1082150