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Pros And Cons Of Earned Tax Credit (EITC)

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Tax time in poor neighborhood is not April but January, and this “income tax” is not what you pay but what you receive. As soon as the W-2s arrive, the working poor eager for their checks from the Internal Revenue Service (IRS) and immediately send the documents to the tax preparers who have flourished and gouged impoverished laborers since the welfare tie limits were enacted by the Congress in 1996. The checks that come from Washington include not only a refund of tax withheld but also an additional payment known as the Earned Income Tax Credit (EITC) (Shipler, 2005, p.13), which is a refundable tax credit designed to redistribute incomes and supplement low-wage workers. The EITC was initiated in 1975 and then expended under President Reagan,
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