Question 10 1 pts Why does the EITC exacerbate the marriage penalty for low-income workers? O The EITC exacerbates the marriage penalty by combining both spouses' incomes to determine eligibility for the credit. Two fairly low incomes can combine to equal a total family income high enough to place the family in the phase-out portion of the EITC. In that situation, adding a second income to the first puts the second income in the range of a very high marginal tax rate. This effect could result in a labor supply reduction for secondary earners in these families. O The EITC exacerbates the marriage penalty by combining both spouses' incomes to determine eligibility for the credit. Two fairly high incomes can combine to equal a total family income high enough to place the family in the phase-out portion of the EITC. In that situation, adding a second income to the first puts the second income in the range of a very high marginal tax rate. This effect could result in a labor supply increase for secondary earners in these families. O The EITC exacerbates the marriage penalty by not combining both spouses' incomes to determine eligibility for the credit. Two fairly low incomes can combine to equal a total family income low enough to place the family in the phase-out portion of the EITC. In that situation, adding a second income to the first puts the second income in the range of a very low marginal tax rate. This effect could result in a labor supply increase for secondary earners in these families. O The EITC exacerbates the marriage penalty by not combining both spouses' incomes to determine eligibility for the credit. Two fairly low incomes could combine to equal a total family income high enough to place the family in the phase-in portion of the EITC. In that situation, not adding a second income to the first puts the second income in the range of a very high marginal tax rate. This effect could result in a labor supply reduction for secondary earners in these families.Question 1 1 Suggest an alternative method of calculating the EITC that reduces this penalty for lowincome workers. D To counter this effect, the EITi'I could be amended so that the average of the two spouses' salaries determined the family income, it could provide for a much longer plateau before phaseout for two-earner families, or it could be applied to individual incomes, regardless of marital status, rather than to family income. (3: To counter this effect, the EITE could be amended so that the highest ofthe tvvo spouses' salaries determined the family income, it could provide for a much longer plateau before phaseout for twoearner families, or it could be applied to indivicli..ia| incomes, regardless of marital status, rather than to family incane. D To counter this effect, the EITE could be amended so that the highest ofthe two spouses' salaries determined the individual income, it could provide for a much longer plateau before phaseout fcr Moearner families, or it could be applied to combined inccrnes, regardless of marital status, rather than to famin income. D To counter this effect, the ETC could be amended so that the average of the two spouses' salaries determined the family income, 'rt could provide for a much longer plateau before phaseout for twoearner families, or it could be applied to combined incomes, regardless of marital status, rather than to family incane