THE ANTIPOVERTY IMPACT OF THE EITC: NEW ESTIMATES FROM SURVEY AND ADMINISTRATIVE TAX RECORDS

Maggie R. Jones; James P. Ziliak

doi:10.1086/720614

THE ANTIPOVERTY IMPACT OF THE EITC: NEW ESTIMATES FROM SURVEY AND ADMINISTRATIVE TAX RECORDS

Maggie R. Jones, James P. Ziliak

Research output: Contribution to journal › Article › peer-review

5 Scopus citations

Abstract

We reassess the antipoverty effects of the earned income tax credit (EITC) using unique data linking the Current Population Survey (CPS) Annual Social and Economic Supplement to Internal Revenue Service (IRS) data for the same individuals spanning tax years 2005–2016. We compare EITC benefits from standard simulators to administrative EITC payments and find that the antipoverty estimates of the EITC are countercyclical in terms of number of recipients, with roughly four million people of all ages and 1.9 million children lifted from after-tax poverty in a typical year. We outline how researchers using public data can address discrepancies between survey estimates of the EITC and administrative tax records.

Original language	English
Pages (from-to)	451-479
Number of pages	29
Journal	National Tax Journal
Volume	75
Issue number	3
DOIs	https://doi.org/10.1086/720614
State	Published - Sep 2022

Bibliographical note

Publisher Copyright:
© 2022 National Tax Association.

Keywords

administrative data linkage
automatic stabilizer
poverty
tax policy

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1086/720614

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title = "THE ANTIPOVERTY IMPACT OF THE EITC: NEW ESTIMATES FROM SURVEY AND ADMINISTRATIVE TAX RECORDS",

abstract = "We reassess the antipoverty effects of the earned income tax credit (EITC) using unique data linking the Current Population Survey (CPS) Annual Social and Economic Supplement to Internal Revenue Service (IRS) data for the same individuals spanning tax years 2005–2016. We compare EITC benefits from standard simulators to administrative EITC payments and find that the antipoverty estimates of the EITC are countercyclical in terms of number of recipients, with roughly four million people of all ages and 1.9 million children lifted from after-tax poverty in a typical year. We outline how researchers using public data can address discrepancies between survey estimates of the EITC and administrative tax records.",

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N2 - We reassess the antipoverty effects of the earned income tax credit (EITC) using unique data linking the Current Population Survey (CPS) Annual Social and Economic Supplement to Internal Revenue Service (IRS) data for the same individuals spanning tax years 2005–2016. We compare EITC benefits from standard simulators to administrative EITC payments and find that the antipoverty estimates of the EITC are countercyclical in terms of number of recipients, with roughly four million people of all ages and 1.9 million children lifted from after-tax poverty in a typical year. We outline how researchers using public data can address discrepancies between survey estimates of the EITC and administrative tax records.

AB - We reassess the antipoverty effects of the earned income tax credit (EITC) using unique data linking the Current Population Survey (CPS) Annual Social and Economic Supplement to Internal Revenue Service (IRS) data for the same individuals spanning tax years 2005–2016. We compare EITC benefits from standard simulators to administrative EITC payments and find that the antipoverty estimates of the EITC are countercyclical in terms of number of recipients, with roughly four million people of all ages and 1.9 million children lifted from after-tax poverty in a typical year. We outline how researchers using public data can address discrepancies between survey estimates of the EITC and administrative tax records.

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THE ANTIPOVERTY IMPACT OF THE EITC: NEW ESTIMATES FROM SURVEY AND ADMINISTRATIVE TAX RECORDS

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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