[New post] Claims about Earned Income Tax Credit

Tyler Cowen posted: " The EITC increases the labor supply of mothers, which leads to increases in payroll and sales taxes paid. The EITC decreases dependence on government transfer spending. Evaluated over a one-year period, the net EITC cost is only 17 percent of the $70 " New post on Marginal REVOLUTION Claims about Earned Income Tax Credit by Tyler Cowen The EITC increases the labor supply of mothers, which leads to increases in payroll and sales taxes paid. The EITC decreases dependence on government transfer spending. Evaluated over a one-year period, the net EITC cost is only 17 percent of the $70 billion annual budgetary cost. Evaluated over a longer-time horizon, the net EITC cost is lower and perhaps zero. The 2009 EITC expansion continued to increase maternal labor supply and earnings. Here is the forthcoming Journal of Public Economics paper, by Jacob E. Bastian and Maggie R. Jones, via the excellent Kevin Lewis. Tyler Cowen | April 4, 2021 at 12:59 am | Categories: Uncategorized | URL: https://wp.me/p2T8CM-l18 Comment    See all comments Unsubscribe to no longer receive posts from Marginal REVOLUTION. Change your email settings at Manage Subscriptions. Trouble clicking? Copy and paste this URL into your browser: http://marginalrevolution.com/marginalrevolution/2021/04/claims-about-earned-income-tax-credit.html