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The Earned Income Tax Credit (EITC) Is

Question 40

Multiple Choice

The Earned Income Tax Credit (EITC) is:


A) a transfer to low-income people who are unable to work.
B) a flat grant that increases by $4,000 the income of all workers below the poverty level.
C) a subsidy to the poor who have low earnings that increases as they earn more, reaches a maxi?mum, and then is phased out to zero as earnings increase above a certain maximum.
D) available to all persons whose incomes are below the poverty level, whether they work or not.

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