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The Earned Income Tax Credit (EITC)

Question 25

Multiple Choice

The Earned Income Tax Credit (EITC) :


A) is a negative tax that transfers income to the poor who have earnings.
B) can increase the incomes of those eligible by as much as 40 percent.
C) is never phased out as the earnings of the recipients increase.
D) Both (a) and (b) are correct.

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