Please look up information on the Earned Income Tax Credit. Make sure you're looking at information for the 2019 income year. (a) Take a two-parent family, married and filing jointly, with two children, and an earned income and adjusted gross income of $50,000. Would they qualify for the EITC? (b) Take a family with a single parent who has three children, and has an earned income and adjusted gross income of $40,000. What value of EITC does this family qualify for? (c) Take a single individual with no children who has an earned income and adjusted gross income of $12,000. What value of EITC does this individual qualify for? (d) Recall the EITC phase-in, plateau, and phase-out regions. And remember very care- fully the definitions of progressive, flat, and regressive tax schedules that we discussed in class. Considering only the EITC and ignoring all other taxes, is the tax schedule progres- sive, flat, or regressive throughout the EITC phase-in region? What about the EITC plateau region? The phase-out region? (This is tricky because the EITC is a subsidy. We call a tax system "progressive" because it taxes the rich proportionally more than the poor. Think about whether a progressive tax system would give the rich or the poor proportionally a greater subsidy.) Please look up information on the Earned Income Tax Credit. Make sure you're looking at information for the 2019 income year. (a) Take a two-parent family, married and filing jointly, with two children, and an earned income and adjusted gross income of $50,000. Would they qualify for the EITC? (b) Take a family with a single parent who has three children, and has an earned income and adjusted gross income of $40,000. What value of EITC does this family qualify for? (c) Take a single individual with no children who has an earned income and adjusted gross income of $12,000. What value of EITC does this individual qualify for? (d) Recall the EITC phase-in, plateau, and phase-out regions. And remember very care- fully the definitions of progressive, flat, and regressive tax schedules that we discussed in class. Considering only the EITC and ignoring all other taxes, is the tax schedule progres- sive, flat, or regressive throughout the EITC phase-in region? What about the EITC plateau region? The phase-out region? (This is tricky because the EITC is a subsidy. We call a tax system "progressive" because it taxes the rich proportionally more than the poor. Think about whether a progressive tax system would give the rich or the poor proportionally a greater subsidy.)
