Critics have claimed that the EITC
A)Creates an incentive for families to have fewer children
B)Causes poor families with children to pay more in taxes than poor families without children
C)Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility
D)Distorts the economic incentives for poor families to work their way out of poverty
E)Does none of the above

Question

Quizplus · Accepted Answer

The EITC (Earned Income Tax Credit) can create a disincentive to work for those in the phase-out range because as their income increases, the credit is gradually reduced, effectively increasing their marginal tax rate.

Critics Have Claimed That the EITC