The federal government has implemented an earned income tax credit – what it has called the Working Income Tax Benefit – in the 2007 Budget. Edmund Phelps has argued that the earned income tax credit in the United States should be replaced with an employment subsidy. This paper assesses the...

The federal government has implemented an earned income tax credit what it has called the Working Income Tax Benefit in the 2007 Budget. Edmund Phelps has argued that the earned income tax credit in the United States should be replaced with an employment subsidy. This paper assesses the...

The federal government has implemented an earned income tax credit--what it has called the Working Income Tax Benefit--in the 2007 Budget. Edmund Phelps argued that the earned income tax credit in the United States should be replaced with an employment subsidy. This paper assesses the importance...