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The '''Earned Income Tax Credit''' is a negative income tax designed to give money to poor people with jobs without using the welfare system.  Originally called the "negative income tax," it was first proposed by conservative economist [[Milton Friedman]] in 1960, and enacted into law under Republican president [[Jerry Ford]] in 1977 and expanded by [[Ronald Reagan]] in 1986.  People with incomes under $37,000 file income tax returns and instead of paying an income tax to the government they get a check from the government.  Depending on the number of dependents and the income earned, checks typically are in the range of $2000 to $3000. The refund phases out as income goes above $16,000. About 20% of eligible families fail to take the credit. Those who did participate received $40 billion in 2008.<ref> See [http://www.cbo.gov/budget/factsheets/2008/eitc.pdf Congressional Budget Office estimates]</ref>

The '''Earned Income Tax Credit''' is a negative income tax designed to give money to poor people with jobs without using the welfare system.  Originally called the "negative income tax," it was first proposed by conservative economist [[Milton Friedman]] in 1960, and enacted into law under Republican president [[Jerry Ford]] in 1977 and expanded by [[Ronald Reagan]] in 1986.  People with incomes under $37,000 file income tax returns and instead of paying an income tax to the government they get a check from the government.  Depending on the number of dependents and the income earned, checks typically are in the range of $2000 to $3000. The refund phases out as income goes above $16,000. About 20% of eligible families fail to take the credit. Those who did participate received $40 billion in 2008.<ref>See [http://www.cbo.gov/budget/factsheets/2008/eitc.pdf Congressional Budget Office estimates]</ref>

==Further reading==

==Further reading==

* Steve Holt. "The Earned Income Tax Credit at Age 30: What We Know" [http://www.brookings.edu/reports/2006/02childrenfamilies_holt.aspx (The Brookings Institution, 2006) online]

* Steve Holt. "The Earned Income Tax Credit at Age 30: What We Know" [http://www.brookings.edu/reports/2006/02childrenfamilies_holt.aspx (The Brookings Institution, 2006) online]

==references==

==References==

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[[Category:Taxation]]

[[Category:Taxation]]

[[Category:Reagan Era]]

[[Category:Reagan Era]]

[[Category:Obama Administration]]

[[Category:Obama Administration]]

[[category:Welfare State]]

[[Category:Welfare State]]