Recent Proposals to Redesign the EITC: A Reply to an Economist's Response

9 Pages Posted: 10 Jan 2008  

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

Abstract

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

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

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

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