How Do EITC Recipients Spend Their Refunds?
16 Pages Posted: 18 May 2008
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.
Keywords: earned income tax credit, expenditure patterns, tax refunds, Personal Income and Other Nonbusiness Taxes and Subsidies, Fiscal Policies and Behavior of Economic Agents, Households, Government Policy, Provision and Effects of Welfare Programs
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