Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply

摘要: Twenty-two million families currently receive a total of $34 billion in benefits from the earned income tax credit (EITC). In fact, EITC is largest cash-transfer program for lower-income at federal level. An unusual feature its explicit goal to use system encourage and support those who choose work. A large body work has evaluated labor supply effects generated several important findings regarding behavioral response taxes. Perhaps main lesson learned evidence confirmation that real responses taxes are important; does respond EITC. The second major related nature response. consistent finding concentrated along extensive (entry) margin, rather than intensive (hours worked) margin. This distinction implications design tax-transfer programs welfare evaluation ta...