Three Essays in Taxation.

摘要: This paper analyzes the effect of Earned Income Tax Credit (EITC) on non-labor income, particularly investment income. Policy-makers have devoted substantial time and resources toward increasing saving rate low-income households with programs like Saver’s Individual Development Accounts. Yet EITC—the largest federal cash transfer program in U.S.—provides a disincentive for individuals to save realize income because EITC benefits decline as rises over certain ranges. I find significant response these disincentives both when semi-parametrically estimate change region which begins being taxed, also parameter parametrically using differences tax changes between taxpayers differing numbers dependents identification. A one percent increase after-tax return causes 3.05 Nearly 40 last two decades fraction recipients savings income-bearing accounts can be explained by changing incentives.