How to Simplify the Code for Low-Income Taxpayers
With a Keynote Address by Representative Tom Petri

The Earned Income Tax Credit, the Child Tax Credit, and the Making Work Pay Tax Credit are only three entries in the long list of tax credits devoted to lessening the tax burden on lower-income families. While these tax credits add greater tax progressivity to the American income tax system than is offered by the graduated statutory income tax rate schedule alone, they also add substantial complexity. In addition, they create substantial work disincentives for some low-income families by generating high marginal tax rates. What can be done to reduce the complexity and adverse work incentives associated with these credits without losing the additional progressivity they provide?

At this AEI event, Representative Tom Petri (R-Wisc.) will discuss the combined impact of low-income tax credits on work incentives. AEI director of economic policy studies Kevin A. Hassett, visiting scholar Lawrence B. Lindsey, and research fellow Aparna Mathur will present a paper that provides a roadmap for replacing the current system of tax credits with a single low-income tax credit that would provide tax progressivity while reducing complexity and work disincentives. Codirector of the Urban-Brookings Tax Policy Center Rosanne Altshuler and Cato Institute director of tax policy studies Chris Edwards will comment. AEI resident scholar Alan D. Viard will moderate.

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About the Author

 

Kevin A.
Hassett

 

Lawrence B.
Lindsey

 

Aparna
Mathur

 

Alan D.
Viard

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Monday, July 21, 2014 | 9:15 a.m. – 11:30 a.m.
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Please join us for a broader exploration of targeted interventions that provide real promise for reducing health disparities, limiting or delaying the onset of chronic health conditions, and improving the performance of the US health care system.

Monday, July 21, 2014 | 4:00 p.m. – 5:30 p.m.
Comprehending comprehensive universities

Join us for a panel discussion that seeks to comprehend the comprehensives and to determine the role these schools play in the nation’s college completion agenda.

Tuesday, July 22, 2014 | 8:50 a.m. – 12:00 p.m.
Who governs the Internet? A conversation on securing the multistakeholder process

Please join AEI’s Center for Internet, Communications, and Technology Policy for a conference to address key steps we can take, as members of the global community, to maintain a free Internet.

Thursday, July 24, 2014 | 9:00 a.m. – 10:00 a.m.
Expanding opportunity in America: A conversation with House Budget Committee Chairman Paul Ryan

Please join us as House Budget Committee Chairman Paul Ryan (R-WI) unveils a new set of policy reforms aimed at reducing poverty and increasing upward mobility throughout America.

Thursday, July 24, 2014 | 6:00 p.m. – 7:15 p.m.
Is it time to end the Export-Import Bank?

We welcome you to join us at AEI as POLITICO’s Ben White moderates a lively debate between Tim Carney, one of the bank’s fiercest critics, and Tony Fratto, one of the agency’s staunchest defenders.

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