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Why Are Democrats Clinging to a Flawed Reagan-Era Tax Credit?

CashTax credits became the preferred policy for redistributing wealth downward precisely because they do so discreetly. Instead of justifying a welfare expenditure, lawmakers got to boast about cutting taxes. Instead of a handout, the credits rewarded hard work. Marshall Steinbaum explained, “The EITC was supposedly the perfect income-support policy because it got the incentives right.” 

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Last Updated: 10/30/19