A Universal EITC : Making Work Pay in the Age of Automation

The universal EITC is a worker subsidy designed to offset wage stagnation. The base proposal would replace existing subsidies for working families with a refundable 100-percent tax credit on individual wages up to $10,000 and a larger, refundable CTC. The maximum credit grows with GDP, guaranteeing that low-wage workers benefit from economic growth. The credits are offset by a broad-based VAT or income surtax. The proposals are progressive: After-tax income for the bottom quintile would increase by about 25 percent. The tax burden on the top one percent would increase by 7 to 14 percent of income, depending on financing