(The column excerpt below appeared in the Sunday, August 15, 2021 edition of The Detroit News. Click here to read the full op-ed.)
By Ken Sikkema and Bob Emerson
The single most successful anti-poverty policy in the United States during the past 45 years has been the earned income tax credit (EITC). The federal EITC, first signed into law by President Gerald R. Ford in 1975 and later expanded by other presidents, including President Ronald Reagan, provides a tax credit for working households with low incomes.
It rewards work, helps families get off welfare and has lifted millions of individuals out of poverty.
Research published by the National Bureau of Economic Research confirms that it also results in another important benefit, uniquely timely for Michigan as we emerge from the COVID-19 environment: As an incentive to work, it increases employment, particularly among single mothers with lower education levels.
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