tax burdens

Brad De Long delong at econ.Berkeley.EDU
Thu Oct 22 12:21:29 PDT 1998



>In a message dated 98-10-20 00:41:21 EDT, you write:
>
><< Does it boost worker take-home pay, or is it
> mostly a subsidy to low-wage employers? The last time I talked to her she
> was saying that its effect boosting the take-home pay of the less-skilled
> was larger than its effect reducing the cost of hiring to those who employ
> the less-skilled. But the issue is far from settled.. >>
>
>Brad,
>
>Earning $8,000/year with a child or two doesn't seem to be very appealing.
>Would you or I want to live under these conditions.
>
>While the marginal effects may seem interesting for economists - NOT ONE
>ECONOMIST would ever want to have to be subjected to the EITC.
>
>Jason

People receive the EITC up until... let me think... they report a taxable income of $28,000 a year. That's a big chunk of the population.

Is the fact that a program benefits poor people a reason not to worry about whether it is functioning well?

Brad DeLong



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