Tax Reform and Poverty


	Tax Reform and Poverty

dmegivern

2-7-2008 8:46 PM

267 views

dmegivern says:

Humorously, EITC was really a Nixon idea.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/d8f58026-27c5-44c0-95a0-7b6a2558fab7/D388ACE0-BDCC-4A3A-B986-4B7128304C74/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.cbpp.org/4-10-06tax.htm" href="http://www.cbpp.org/4-10-06tax.htm" style="font-size: 11px;">www.cbpp.org</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbpp.org/4-10-06tax.htm"><SPAN>TAX REFORM AND POVERTY
</SPAN></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbpp.org/4-10-06tax.htm"><FONT size="2" face="Arial">The tax system has a pervasive impact on poverty, both directly through its role in the distribution of society’s resources and indirectly through its effects on the incentives for economic decisions like working and saving.  The two most important facets of the tax system for low-income families are payroll taxes and the Earned Income Tax Credit (EITC), the former of which levies a tax on earned income and the latter provides a tax credit for earned income.</FONT></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbpp.org/4-10-06tax.htm">Underlying the persistence of poverty has been wage stagnation at the bottom.  From 1973-2003, real hourly wages for men at the 10<SUP>th</SUP> percentile of the earnings distribution fell 3 percent.  At the same time, median wages fell 1 percent and wages for workers at the 90<SUP>th</SUP> percentile rose 22 percent.  The economic blow for families at the bottom of the income spectrum was partially cushioned by several expansions in the EITC</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbpp.org/4-10-06tax.htm"><div align="center"><img src="http://content8.clipmarks.com/blog_cache/www.cbpp.org/img/B3DB3AA1-AA19-4AAA-BD53-627113EF815B" alt="" /></div></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbpp.org/4-10-06tax.htm"><FONT size="2" face="Arial">The EITC has several limitations that could easily be addressed by strengthening the credit.</FONT></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/D388ACE0-BDCC-4A3A-B986-4B7128304C74/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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