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.
How to Simplify the Code for Low-Income Taxpayers
With a Keynote Address by Representative Tom Petri
May 12, 2009
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Tuesday, May 21, 2013 | 5:00 p.m. – 6:30 p.m.
Free beer: Liberating libations from ‘Bootleggers and Baptists’
Join us for a discussion of the history and future of federal and state alcohol regulation and competition, followed by a reception with beer, wine, and spirits.
Wednesday, May 22, 2013 | 5:00 p.m. – 6:30 p.m.
NCLB sanctions: Tests taken, lessons learned
Join education scholars and practitioners for a discussion about the latest NCLB research and its implications for future education policy.
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Thursday, May 23, 2013 | 12:00 p.m. – 1:30 p.m.
Competing visions of the common good: Rethinking help for the poor
What shared commitments do we have as citizens and neighbors to care for one another? How can a proper ordering of America’s political economy enable the most people to have the best life? At this event, Rep. Frank Wolf (R-VA), a longtime champion of human rights causes, and AEI President Arthur Brooks will join Wallis in addressing these and other questions.
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