A UNIVERSAL EITC: MAKING WORK PAY IN THE AGE OF AUTOMATION

The universal earned income tax credit is a worker subsidy designed to offset wage stagnation. The base proposal would replace existing subsidies for working families with a refundable 100 percent tax credit on individual wages up to $10,000 and a larger, refundable child tax credit. The maximum cre...

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Veröffentlicht in:National tax journal 2020-12, Vol.73 (4), p.1187-1218
1. Verfasser: Burman, Leonard E.
Format: Artikel
Sprache:eng
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Zusammenfassung:The universal earned income tax credit is a worker subsidy designed to offset wage stagnation. The base proposal would replace existing subsidies for working families with a refundable 100 percent tax credit on individual wages up to $10,000 and a larger, refundable child tax credit. The maximum credit grows with gross domestic product, guaranteeing that low-wage workers benefit from economic growth. The credits are offset by a broad-based value-added tax or income surtax. The proposals are progressive: After-tax income for the bottom quintile would increase by about 25 percent. The tax burden on the top 1 percent would increase by 7-14 percent of income, depending on financing.
ISSN:0028-0283
1944-7477
DOI:10.17310/ntj.2020.4.12