The federal government administers an Earned Income Tax Credit (EITC), as do many states. States that enact EITCs can reduce child poverty, support welfare-to-work, and cut taxes for working poor families. The popularity of state EITCs results from continued child poverty, welfare reform, and tax changes. Research confirms the effectiveness of…

This analysis examines poverty in families headed by working single mothers, addressing whether and to what degree their economic situations have improved. It investigates the effect of the 1996 Personal Responsibility and Work Opportunity Reconciliation Act, which moved single mothers from welfare to work. Poverty data from the annual Census…

This report examines state earned income tax credits (EICs) as a means to assist working poor families to escape poverty. Specifically, the report notes that six states have their own EICs, expressed as a percentage of the federal EIC, with the advantages being that the credit is a reward for work, is a pro-family policy, is efficiently targeted,…

The impact of the Earned Income Tax Credit (EITC) on working families was analyzed. The analysis established that the EITC is, on balance, a highly effective program that meets its primary objectives well. The following benefits of the EITC were identified: (1) it reduced the poverty rate in 1999 by an estimated 1.5 percentage points; (2) it is…

Much of the discussion surrounding marriage promotion policies have little basis in the reality of life in low-income communities. Research suggests that much of the income differential between low-income and middle class women is the result of differences in educational attainment, labor market experience, and access to labor supply rather than…