The Collision of Tax and Welfare Politics: the Political History of the Earned Income Tax Credit, 1969-1999

44 Pages Posted: 1 Mar 2007

See all articles by Dennis J. Ventry

Dennis J. Ventry

University of California, Davis - School of Law

Abstract

This article uses the political history and pre-history of the EITC to describe how the politics of welfare reform influence tax policies that function as social policy. It suggests that the economic tradeoffs inherent in the formulation of tax-transfer programs are also political tradeoffs. It examines policy choices between costs and labor supply incentives, as well as those between ease of participation and compliance rates. This article concludes that although economic analysis influenced the creation and development of the EITC, political factors, not economics, animated the history of the program.

Suggested Citation

Ventry, Dennis J., The Collision of Tax and Welfare Politics: the Political History of the Earned Income Tax Credit, 1969-1999. National Tax Journal Vol. 53, No. 2, pp. 983-1026, 2000, Available at SSRN: https://ssrn.com/abstract=966351

Dennis J. Ventry (Contact Author)

University of California, Davis - School of Law ( email )

UC Davis School of Law
400 Mrak Hall Drive
Davis, CA 95616-5201
United States
530-752-4566 (Phone)

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