TPC Says Universal EITC Proposal Could Greatly Reduce Poverty

Urban-Brookings Tax Policy Center

A universal earned income tax credit, which would be a wage credit of 100 percent of earnings up to a maximum of $10,000, and an expanded child credit, offset by an 11 percent value-added tax, would be very progressive and almost eliminate poverty for families with one full-time worker, the Urban-Brookings Tax Policy Center said in a May 20 report.

<p>A universal earned income tax credit, which would be a wage credit of 100 percent of earnings up to a maximum of $10,000, and an expanded child credit, offset by an 11 percent value-added tax, would be very progressive and almost eliminate poverty for families with one full-time worker, the Urban-Brookings Tax Policy Center said in a May 20 report.</p>