Congress is considering sending cash to all American households to help them handle the economic fallout of the coronavirus pandemic. But this will disproportionately benefit high and fixed-income households at the expense of low-income workers who remain the most economically vulnerable. Fortunately, there is a simple and efficient way for Congress to distribute aid to these workers and limit the long-term consequences of the current crisis: Pass an emergency earned income tax credit (EITC) that can be distributed to low-income households within weeks.
First created in 1975, the EITC today it is one of the largest income support programs for low-income working families. The amount of the EITC benefit is equal to a percentage of annual earnings and given to families in a lump-sum cash payment around tax time. It is determined by the number of children living in the household. Working households with incomes up to $50,000 per year can be eligible to receive this benefit. In 2019, the average EITC was $2,476 per qualifying household.
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