Have the 1996 welfare reforms and expansion of the earned income tax credit eliminated the need for a basic income guarantee in the US?

2005 ◽  
Vol 63 (4) ◽  
pp. 595-611 ◽  
Author(s):  
James B. Bryan
Keyword(s):  
Income Tax ◽  
Earned Income Tax Credit ◽  
Tax Credit ◽  
Basic Income ◽  
Earned Income ◽  
The Us ◽  
Welfare Reforms

scholarly journals Do Taxpayers Bunch at Kink Points?

2010 ◽  
Vol 2 (3) ◽  
pp. 180-212 ◽  
Author(s):  
Emmanuel Saez
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Earned Income Tax Credit ◽  
The Self ◽  
Tax Credit ◽  
Marginal Tax Rate ◽  
Earned Income ◽  
Tax Rate ◽  
The Us ◽  
Return Data

This paper uses tax return data to analyze bunching at the kink points of the US income tax schedule. We estimate the compensated elasticity of reported income with respect to (one minus) the marginal tax rate using bunching evidence. We find clear evidence of bunching around the first kink point of the Earned Income Tax Credit but concentrated solely among the self-employed. A simple tax evasion model can account for those results. We find evidence of bunching at the threshold of the first income tax bracket where tax liability starts but no evidence of bunching at any other kink point. (JEL H23, H24, H26)

scholarly journals The Rise of Working Mothers and the 1975 Earned Income Tax Credit

2020 ◽  
Vol 12 (3) ◽  
pp. 44-75
Author(s):  
Jacob Bastian
Keyword(s):  
Maternal Employment ◽  
Income Tax ◽  
Working Mothers ◽  
Parental Leave ◽  
Earned Income Tax Credit ◽  
Tax Credit ◽  
Earned Income ◽  
Us Economy ◽  
The Us ◽  
High Fraction

The rise of working mothers radically changed the US economy and the role of women in society. In one of the first studies of the 1975 introduction of the Earned Income Tax Credit, I find that this program increased maternal employment by 6 percent, representing 1 million mothers and an elasticity of 0.58. The EITC may help explain why the US has long had such a high fraction of working mothers despite few childcare subsidies or parental leave policies. I also find suggestive evidence that this influx of working mothers affected social attitudes and led to higher approval of working women. (JEL H24, J16, J22, J31, K34, Z13)

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