ECOCB535_Competency_2_Part_2.doc Government Intervention and the Earned Income Tax Cred

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ECOCB535_Competency_2_Part_2.doc Government Intervention and the Earned Income Tax Credit University of Phoenix ECOCB/535: The Digital Economy Government Intervention and the Earned Income Tax C... redit The Earned Income Tax Credit was established in 1975 to better support low income families and specifically encourage single mothers to work. The Child Tax Credit was established much later in 1997 to support working families with raising children. Both pieces of legislation have been topics of much discussion over the years and most especially during the Great Recession time period when many Americans were struggling. Several alterations and expansions have been made or proposed as well (Komro et al., 2020). During the Great Recession that began in 2008, the government intervened in the US economy because of the financial market failures and the impact they had on working families. The intervention expanded on existing legislation regarding the EITC and CTC to promote economic recovery (American Recovery, 2009). Although it is generally accepted among many economists to be a very positive piece of legislation there remain many varied opinions on the scope, cost, and size of it (Maag & Airi, 2020). The American Recovery and Reinvestment Act of 2009 was passed to increase the level of government support for the workforce encouraging families and individuals to find employment. The EITC was increased to provide more support to working families and individuals by phasing in a higher, refundable tax cred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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