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. Aboput 20% of eligible families fail to take the credit, which costs the government about $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. Aboput 20% of eligible families fail to take the credit, which costs the government about $40 billion in 2008.<ref> See [http://www.cbo.gov/budget/factsheets/2008/eitc.pdf Congressional Budget Office estimates]</ref> |