Tag Archive for EITC

Poverty

Sadly, even with the world’s largest economy and a GDP per capita of over $49,000, poverty in the U.S. continues to be a fact of life for tens of millions of unfortunate Americans. In 2010, using the widely accepted measure of poverty as defined by the US Census Bureau, it was estimated that over 46 millions live in poverty, a number which represents more than 15% of the population.

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Recovery Act

The US Recovery Act and Reinvestment Act, also known simply as the Recovery Act and the Stimulus, became law during President Barack Obama‘s first term in office, on February 17th, 2009.

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IRS

IRS stands for the Internal Revenue Service. This is a branch of the treasury department. The bureau first collected taxes in 1862 in order to raise money for funding the American civil war. It has the mandate to ensure that every American citizen pays taxes. Currently, the IRS collects over 2.4 trillion dollars in form of taxes.

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EITC

The Earned Income Tax Credit (EITC) is a refundable tax credit offered by the US government to individuals and couples, especially those with children, who are on low, or medium, levels of income. A dual purpose tax credit, the tax credit is designed to offset federal income and payroll taxes, and also provide an incentive for those on a low income to continue working. Since its introduction, a number of states have set up EITC schemes, and these supplement the government tax credit.

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Low Income

For the first time in more than half a century, the number of families on a low income is growing in the US, and the number of families now is poverty is also on the increase. In almost every year from the end of the Second World War until the turn of the century, household incomes in the US rose. After 2000, however, they leveled off for some time and now, in the last couple of years, they have started to decline. So what has caused this increase in the number of low income families?

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