The Impact of the Earned Income Tax Credit
A Brookings survey analyzes the spatial distribution of working poor families in 27 U.S. regions and finds that EITC is a significant antipoverty investment in cities.
The federal Earned Income Tax Credit (EITC) will boost earnings for over 18 million low-income working families in the U.S. by more than $30 billion this year. This survey series uses IRS data to analyze the spatial distribution of working poor families in 27 regions across the US. It finds that the EITC is a significant federal antipoverty investment in cities and their regions, and that in most regions a large share of EITC dollars flows to the suburbs. The surveys conclude by describing steps that cities and their regions can take that leverage the federal EITC, making work pay for lower-income families and helping them to save and build assets.
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