Tax benefits for low-income taxpayers and families with children are exceedingly complex. Instead of the confusing Earned Income Tax Credit (EITC), Congress should consider implementing a large, simple, refundable earnings credit. This would better encourage work and automatically provide needed money to low-income workers without any sort of complicated enrollment process.
The Bipartisan Policy Center recommends a 17.5 percent refundable credit on an individual’s first $20,000 of income, providing a large, understandable incentive to work and helping to lift people out of poverty.
