The earned income credit offsets the burden of the federal payroll tax on low-income families and encourages individuals to seek employment rather than to depend on welfare.

Question

Quizplus · Accepted Answer

The earned income credit provides a refundable tax credit to eligible low-income workers, which can offset the federal payroll tax they owe and even result in a net payment from the government. This can incentivize individuals to work and earn income, rather than relying on government assistance programs like welfare.

The Earned Income Credit Offsets the Burden of the Federal