Major

Economics

Advisor

Devine, Theresa J.

Advisor Department

Economics

Date

5-2019

Keywords

tax, economics, political history, welfare, earned income tax credit

Abstract

This paper offers a comprehensive political history of the Rhode Island Earned Income Tax Credit (EITC) and an analysis of Rhode Island EITC recipients. It explores the history of the Rhode Island EITC, an income subsidy available to low-income workers, from its introduction in 1975 through 2018. It details the forces behind expansions and reforms and the effects of those changes. It also analyzes microdata to construct a profile of current EITC recipients. This paper concludes that the Rhode Island EITC has historically been viewed as both a poverty alleviation program and an incentive for labor market work. The Rhode Island EITC is found to largely benefit low-income working single parents.

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