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This is the reason a lot of economists think it would be better to implement the earned income tax credit as a wage subsidy rather than a tax credit. Instead of
by evanpw 11y ago
This is the reason a lot of economists think it would be better to implement the earned income tax credit as a wage subsidy rather than a tax credit. Instead of a getting a big lump sum at tax time, you'd get a bigger paycheck: kind of like a negative tax withholding.
- rubyfan 11y agoThat would make sense if it is intended to be welfare. I could honestly say when I was getting a bigger tax refund than what I paid in taxes, I really didn't know what it was or understand why I was getting it and when it would go away. As a once a year thing that I didn't understand, it had little influence on my thinking about work and I certainly didn't think about it as welfare. As a more frequent payout I'm certain I would have gave it more thought and it would have an influence on thinking and behaviors. As a working person I'd likely have considered it welfare and would have given it consideration as my pride and ego would have to grapple with that.