Reforming income tax laws will boost Pennsylvania’s families out of poverty
Amidst all the political debate over government poverty-reducing policy, sometimes minor changes make the biggest difference. Tax law, although it may seem a few steps removed, can be one of the most effective means of redistributing wealth to the portion of our society that will receive the highest marginal benefit. The federal Earned Income Tax Credit (EITC), is one example. The federal EITC was created in 1975 for two purposes: (1) providing a guaranteed minimum income for working Americans and (2) stimulating the economy. Three years later, Congress made it a permanent part of the tax code. Today, it is one of America’s largest, most successful anti-poverty tools.
The WPBA’s policy research this semester highlights the effectiveness of earned income tax credits in reducing poverty, advocating the adoption of an earned income tax credit at the state level as a clear step in the right direction in the fight against poverty in Pennsylvania.
To read the first version of the WPBA’s policy proposal for the Pennsylvania State Legislature, Click Here.
Related posts:
- Simple, Effective, & Necessary: Adopting an Earned Income Tax Credit in Pennsylvania
- The solution to local poverty is local entrepreneurship
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