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Pennsylvania Policy Group Calls for State to Adopt EITC

Dated Aug. 28, 2020

SUMMARY BY TAX ANALYSTS

The Pennsylvania Budget and Policy Center advocated for the state to adopt an earned income tax credit (EITC) program, arguing that a state EITC, especially one that is modeled after the federal program and therefore easy to implement, has a “poverty-reducing effect” and retains low-income taxpayers in the workforce; the group also writes that an EITC would have a “stimulus” effect during the COVID-19 pandemic and would benefit the economy.

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