These changes will place more families in the work incentive range of the EITC without increasing its total cost. (Shortening the phaseout will increase the marginal tax rate within the range. but it will affect fewer families. Texas Republican Rep. Bill Archers tax proposalwhich passed the Ways and Means Committee last Tuesdaydoes shorten the phaseout range.) Implementing further policies designed to cut down on fraud. such as requiring valid Social Security numbers for all applicants to prevent undocumented workers from claiming the credit. Finally. requiring firms to notify their lowwage workers that the credit can be applied to each paycheck. rather than collected at years end. Less than one percent of EITC recipients utilize this option.
Keywords matched
undocumented