In a series of major expansions starting in 1987, the earned income tax credit (EITC) has become a central part of the federal government's anti-poverty strategy. In this paper, we examine the impact of the Tax Reform Act of 1986 (TRA86), which included an expansion of the EITC, on labor force...

The IRS estimates that more than 20 percent of Earned Income Tax Credit (EITC) payments are made in error. By matching the Current Population Survey (CPS) to tax return data, this paper finds that a large portion of the overpayments went to families with children. Depending on the exact measure...

In a series of major expansions starting in 1987, the earned income tax credit (EITC) has become a central part of the federal government's anti-poverty strategy. In this paper, we examine the impact of the Tax Reform Act of 1986 (TRA86), which included an expansion of the EITC, on labor force...