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In October 1972 the Government published a discussion document, the Green Paper Proposals for a Tax-Credit System, which sought 'a way to simplify and reform the whole system of personal tax collection and, at the same time, to improve the system of income support for poor people'. In this article we discuss some of the implications of the proposals for the distribution of income support, the effects on personal incomes, both in cash and kind, the cost of the proposals and how this might be met, and some aspects of the resulting tax and social security system.

The federal government offers an incentive to rehabilitate designated buildings that are older than 50 years. Missouri authorized a tax credit with the same purpose, the Missouri Historic Preservation Tax Credit, in Senate Bill 1 of the second 1997 extraordinary session. Shortly after the state program was approved by the legislature, Carolyn Toft, the Executive Director of the Landmarks Association of St. Louis, compared the program to publicly financed sports stadiums and said, "this is precisely the kind of incentive that brings the things we hear about when people are discussing sports palaces… bit by bit you can put a community or a main street or a neighborhood back together" (Young, 1997). The federal and state programs have been used to redevelop old buildings in small and large cities throughout Missouri. Since the state program was created, the use of the program and the cost to the state has grown significantly. ; Includes bibliographical references

Intro -- RESEARCH AND EXPERIMENTATION TAX CREDIT -- RESEARCH AND EXPERIMENTATION TAX CREDIT -- CONTENTS -- PREFACE -- Chapter 1 RESEARCH AND EXPERIMENTATION TAX CREDIT: CURRENT STATUS AND SELECTED ISSUES FOR CONGRESS* -- Summary -- Introduction -- Design of the Current R&E Tax Credit -- Qualified Research Expenditures -- Regular Research Credit -- Calculation: Regular Research Tax Credit -- Alternative Incremental Research Credit -- Calculation: Regular Research Tax Credit -- Alternative Simplified Credit -- Basic Research Credit -- Energy Research Credit -- Option to Claim a Refundable Research Tax Credit in Lieu of Bonus Depreciation in 2008 and 2009 -- Legislative History of the Research Tax Credit -- Effectiveness of the Research Tax Credit -- Policy Issues Raised by the Current Research Tax Credit -- Lack of Permanence -- Weak and Uneven Incentive Effects -- Uneven Incentive Effect -- Weak or Inadequate Incentive Effect -- Current R&D Tax Incentives are Inadequate -- Significant Gap Between the Credit's Average Effective Rate and Its Statutory Rate -- Non-Refundable Status -- Unsettled and Ambiguous Definition of Qualified Research -- Lack of Focus on R&D Projects with Relatively Large Social Returns -- Legislation in the 111th Congress to Modify and Extend the Research Tax Credit -- Other Significant Perspectives on the Future of the Credit -- End Notes -- Chapter 2 TAX POLICY: THE RESEARCH TAX CREDIT'S DESIGN AND ADMINISTRATION CAN BE IMPROVED* -- Why GAO Did this Study -- What GAO Recommends -- What GAO Found -- Abbreviations -- Background -- History and Overview of Credits for Different Types of Research -- How the Research Credit Is Targeted -- Qualified Research Expenses -- The Rationale behind an Incremental Design for the Credit -- Computation of the Research Credit -- Restrictions on the Credit's Use -- Group Aggregation Rules

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This article examines the policy, administrative and compliance issues that have arisen with the UK Working Tax Credit (WTC) and Child Tax Credit (CTC). It provides a critical commentary on overpayments; underpayments; error and fraud; take-up; and employer compliance costs. From a social policy perspective, these problems have damaged the effectiveness of tax credits, and from public policy and public finance viewpoints, they have damaged the reputation of HM Revenue & Customs (HMRC) and HM Treasury. There is a strong case for a re-examination of the programme and its administration, to see if realistic reforms could deliver a more effective system.

AbstractIntroduced in the late 1990s, tax credits grew under successive Labour governments to become a cornerstone of UK social policy. Distinguished from traditional welfare policies by their target group and their mode of administration, and with goals that appeared capable of commanding support across the ideological spectrum, tax credits until recently seemed to hold the key to tackling poverty in a politically popular manner. But since 2010 the tax credit system has been systematically dismantled, initially qualitatively and latterly also quantitatively. This paper discusses the multiple factors that help to explain the rapid fall from grace in the UK of this liberal approach to supporting the incomes of poor working households.

In this article, I review the most prominent provision of the federal income tax code that targets low-income tax filers, the Earned Income Tax Credit (EITC), as well as the structurally similar Child Tax Credit and Additional Child Tax Credit. I discuss the programs' goals: distributional, promoting work, and limiting administrative and compliance costs. The article reviews the history of the programs, the predicted economic effects, and what is known about program impacts and distributional consequences. I conclude that the EITC effectively targets low-income households and is efficient in reducing poverty while encouraging work and that increases in after-tax household incomes lead to improved outcomes over the life course for children of those households. I propose reforms to the program, including policies that expand the generosity of the credit and increase take-up, as well as structural reforms that include spreading benefits throughout the year and reducing reliance on paid tax preparers.

The Labour government's 2003 tax credit reform served to export the costs of administrative simplicity to tax credit recipients, making them both responsible for reporting changes of circumstances and financially responsible for the consequences of not doing so. This article uses the results of a small-scale telephone survey of lone parents in receipt of tax credits to illustrate how the high volume of changes in claimants' circumstances undermines the administrative efficiency of the tax credits system and how this can add to the financial stress experienced by certain vulnerable tax credit recipients.

This paper provides estimates of utilization for the Empowerment Zone (EZ) wage tax credit, a subsidy claimed by employers who operate in and hire residents of federally designated areas experiencing economic distress. The EZ credit is currently the largest employer‐based wage tax credit in the federal tax code in terms of dollars claimed, with almost $250 million claimed in 2002. I show that about 6.4 percent (and at least 3.5 percent) of the working age population was claimed under the EZ wage credit in 1999. In addition, I estimate that 24.2 percent (and at least 13.1 percent) of those employed inside of the target area were claimed for the credit. I create these national estimates of use with information on credit dollars claimed from the Internal Revenue Service and population data on the eligible population from the census. These measures of tax credit use are an alternative to the use rate of firms that are presented in the existing literature, and reveal how effective the credit is at reaching residents of the target area.

A letter report issued by the General Accounting Office with an abstract that begins "In 1997, 4,369 corporations earned a total of $135 million in Work Opportunity Tax Credits (WOTC). The employers who earned most of the credit were large companies with gross receipts exceeding $1 billion and engaged in nonfinancial services and retail trade. GAO's analysis of state agency data for California and Texas from 1997 through 1999 showed that three percent of participating employers accounted for 82 percent of all hires of WOTC-certified workers. Many employers who participated in the tax credit program in those two states in 1999 say that, besides the opportunity to obtain the credit, their participation in the program was also greatly influenced by such factors as the need to address a labor shortage and the opportunity to be a good corporate citizen. The results of GAO's two state analysis indicate a low probability of replacing employees who were not eligible for the tax credit."

Tax credits were introduced in 2003 as the main instrument to deliver the Labour government's commitments to increase work incentives, to make work pay, and to reduce poverty levels among working families. This article uses a case study of one family over several years to explore and illustrate the experience of being in the tax credit system. The analysis highlights the importance of tax credits to family income, but also the negative impact of late and incorrect payments, payments that varied in inexplicable ways, reductions in awards for overpayments, and the lack of detailed information about awards.