Suchergebnisse

The announcement of the government's intention to introduce a new Child Tax Credit for families with children, along with a Working Tax Credit for low-income workers could herald one of the most radical changes to welfare support for low-income families in the UK. This article looks at what is known so far about the new tax credits and how they will operate.

Intro -- Contents -- Preface -- The Earned Income Tax Credit (EITC): An Overview* -- Summary -- Introduction -- Eligibility -- Families with Children -- Childless Adults -- Credit Amount -- Calculation of EITC Amount -- Indexing -- Marginal Tax Rates -- Participation -- Geographic Distribution -- Distribution by Number of Eligible -- Children and Income -- Interaction with Other Tax Provisions -- Other Federal Tax Credits -- Means Tested Programs -- State EITC Provisions -- Issues -- Work Incentives -- Marriage Penalty -- Anti-Poverty Effectiveness (Family Size) -- Compliance -- Expiring Provisions -- Appendix A. Legislative History of the EITC -- Work Bonus Plan (1972-1974 Proposals) -- Enactment of EITC in 1975 -- Extensions of EITC (1975-1977 Laws) -- Permanent Status for EITC and Rise in -- Maximum Credit (1978 Law) -- Rise in Maximum Credit (1984 Law) -- Indexation of EITC and Rise in Maximum Credit (1986 Law) -- Rise in Maximum Credit and Establishment of Family-Size Adjustment and Supplemental Credits (1990 Law) -- Basic EITC -- Supplemental Young Child Credit -- Supplemental Health Insurance Credit -- Expansion of Credits, Coverage of Childless Adults, and Repeal of Supplemental Credits (1993 Law) -- Credit for Families -- Extension of EITC to Childless Households -- Coverage of Overseas Military Personnel (1994 Law) -- Eligibility Limit Based on Investment Income (1995 Law) -- Revisions of EITC in the Welfare Reform Bill (1996 Law) -- Deny EITC to Undocumented Workers -- Disqualified Income -- Broaden Income Used in EITC Phase-out -- Allow State Welfare Programs to Count EITC -- Denying Credit Based on Prior Claims (1997 Laws) -- Reduction of Marriage Penalty and -- Simplification of the EITC (2001 Law) -- Uniform Definition of a Child and Combat Pay (2004 Law) -- Hurricane Relief (2005 Law)

The Tax Credits system introduced in the UK by the previous Labour government is from 2013 to be replaced by a Universal Benefit system. The new system should have some major potential advantages, provided it avoids the problems experienced with the Tax Credit system. The paper reviews and updates previous research on Tax Credits and sets out recommendations for the design and administration of future welfare benefit systems, drawing on critical analyses of the Tax Credit system.

Pennsylvania has found a sensible workaround to the ideological divide over funding private schools with public money, said Zachary Navit (2L), as he presented the semester's second Student Scholars Series lecture on March 26. Two state programs bypass the issue by providing tax credits to businesses for funds donated to approved scholarship or educational improvement organizations which benefit eligible students in both public and private schools in the Commonwealth. Since these tax credit programs are not government funding of institutions but private money going to private foundations, the system avoids constitutional attacks. Other states could learn from Pennsylvania's approach, Navit argued. A summary of the event is available here.

The child tax credit and working tax credit were introduced in April 2003. When fully operational, the child tax credit will represent the majority of government financial support for children. It is designed to simplify the system of financial support for parents, and provides support that is meanstested against family income. The working tax credit is designed to make work more financially attractive. It means that people with or without children in work and on a low income may receive extra help from the State. This Briefing Note looks at: * the changes to tax credits that happened in April 2003; * why the new tax credits have been introduced; * how they work; * the cost and distributional impact; * the impact on work incentives; * what levels of take-up we might expect.

AbstractThe investment tax credit is a familiar example of a tax expenditure. The evaluation of its effectiveness described in this chapter provides a model for evaluating other tax expenditures.

"The Low Income Housing Tax Credit (LIHTC) represents a novel tax expenditure program that employs "investable" tax credits to spur production of low-income rental housing. While it has grown into the largest source of new affordable housing in the U.S. and its structure is now being replicated in other programs, the LIHTC has also drawn skepticism and calls for its repeal. This paper outlines a conceptual framework for exploring the conditions under which investable tax credits may be the most effective mechanism to deliver a production subsidy and discusses the desirability of employing investable tax credits in other policy domains. Estimates of tax expenditures under this program are provided and efficiency costs, distributional issues, and the likely effects of reforms to tax provisions such as the AMT are considered"--National Bureau of Economic Research web site