SSRN Electronic Journal · 2008 · 51 citations · 6 references
Open access
Public AffairsEconomicsPublic FinanceIncome Support PolicyPublic ExpenditureTaxationIncome SupportTax CreditsTax Credits For Low-income HouseholdsAccess For Low-income FamiliesEarned Income Tax Credit PolicyEarned Income TaxesJob AccessPublic Policy SupportRefund Rate DeterminationRefundable CreditsTaxpayer Refunds
The authors determine what items are purchased using the earned income tax credit (EITC)?one of the largest sources of public support for lower-income working families in the U.S. They find that recipient households? EITC payments are used primarily for vehicle purchases and transportation spending, both of which are crucial to job access and consistent with the EITC?s prowork goals.
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