View Zhirong Zhao's profile on LinkedIn

Blogroll

My pages

Visitors

Powered by

Header image of Hong Kong financial center courtesy of hleung on flickr.

The Minnesota Working Family Credit: Another Government Giveaway or Sound Economic Policy?

This is a guest post, originally posted by Brad at the Course Weblog of PA5113:
---- ----

In 1991, Minnesota created the Working Family Credit (WFC), based on the Federal Earned Income Tax Credit (EITC). The EITC has been around since 1975, when it was included in an economic stimulus package (sound familiar?). It was small, only $400 for families with children, but 6.2 million families still claimed the credit in its first year. The credit was made permanent in 1978, expanded significantly in 1986 under President Ronald Reagan, and doubled in size under President Clinton in 1993. It was in 1993 that a small credit for single working adults was added.

The EITC is one of the largest and generally considered the most successful anti-poverty programs of the Federal government. It's also one of the few US social welfare programs widely adopted outside North America. It may be surprising to learn that the origin of the EITC can be traced to a proposal by conservative economist Milton Friedman. He had originally suggested a negative income tax, which would have replaced all welfare programs with a cash payment that declined as income rose. Despite the support of then President Nixon, Congressional opposition to the idea led instead to the creation of the EITC.

The EITC, and the WFC, is a means-tested tax credit that applies only to earned income. The credit is calculated through a formula that considers the number of dependent children, shown below.

EITC+Table.jpg

A taxpayer’s EITC increases for every dollar earned until a maximum earned income threshold is reached but the credit does not decrease until a much higher phase-out threshold is reached. The credit is structured this way to decrease the disincentive for individuals and families at the maximum earned income threshold.

large_map_4-08.jpg

The first state to establish its own state EITC was Rhode Island in 1986. Since then, twenty-two more states and the District of Columbia have created their own credits. Like the Federal credit, most state credits are refundable. Only 4 states do not provide refundable credits: Connecticut, Delaware, Maine, and Virginia. There are 18 states with a state income tax, but without a state version of the EITC credit. Households can claim both the Federal EITC and their state credit; they are not mutually exclusive.

Eligibility for these credits is based on the Federal EITC standard. Every state, except Minnesota, calculates its credit as a fraction of the Federal credit.

In 1998, Minnesota restructured its Working Family Tax Credit and renamed it the Working Family Credit. The old credit was set at 15% of the EITC and was scheduled to increase to 25% in 1998, but the Legislature was increasingly concerned with disincentives created by the interaction of the credit with wages and the state's welfare programs. So, the legislature created a two-tier system that increases the maximum benefit, so net income does not decline as a recipient works more hours. Unlike the EITC, when the maximum benefit is reached, the Minnesota state credit increases to a second and higher maximum. The state credit only begins to phase-out when earned income reaches a new higher floor. This change was made to address the relative regressiveness of state income taxes and increase the work incentive.

Most studies indicate that the EITC and similar state credits create a meaningful work incentive and raise low-income working families out of poverty. In 2003, it was estimated that EITC lifted 4.4 million families above the poverty line. It is also estimated that 60% of the increase in employment of single mothers is also because of the credits.

Although the EITC and related state credit programs are generally regarded as effective and successful, there are some common issues associated with them. These problems include: work disincentives, low participation rates, and tax filing costs. Another criticism sometimes leveled at the program is that it does not address poverty for indigent non-working adults. This latter criticism seems to miss the point of the credit. Minnesota has already addressed the first problem with the 1998 revisions to its credit formula. To address some of the other concerns, we recommend the following actions: increase outreach to eligible populations, especially non-native English speakers; ensure free tax filing services are available in low-income communities; and monitor WFC usage and job participation. We believe these actions will provide a solid first step toward addressing common problems with the WFC and increase the credit's effectiveness.

Comments

Excellent read, I just passed this onto a colleague who was doing some research on that. And he just bought me lunch since I found it for him smile Thus let me rephrase that: Thanks for lunch!

i think you should check your code one more time

I was your bigest fan but under no circumstances yet again nou I hate u I won't be able to believe I thouht u were hot

I would suggest using invisionfree.com and creating a book club forum there where men and women can explore stuff, you may have a calendar into which you can add the next meetings, you can allow only approved members to see certain topics (like private, friend to friend discussions) and you can skin it with a lot of freely available skins that will give it an extremely personal, distinct look.

This is such a fantastic idea. A friend of mine sent me your backlink. It's such a superior way to engage readers offline and get physical mail which everyone loves. I may really have to do this after my blog is up and running a bit more.

I simply needed to thank you so much once again. I am not sure what I would've gone through in the absence of the creative concepts shared by you directly on such a industry. It has been a daunting scenario for me personally, nevertheless noticing this well-written approach you managed the issue forced me to leap over happiness. Extremely thankful for this service and as well , hope you are aware of a great job you are getting into training some other people using a web site. I'm certain you have never encountered any of us.

Lovely blog! I am loving it!! Will be back later to read some more. I am taking your feeds also

kitchen remodeling said on December 27th, 2010 at 11:32 am

Trust me these things come in handy when you need them. Tom Zegan

Quite Wonderful ! I think Google should look forward to it. They can opt for the same seem and feel for brand pages in order to bring innovation.

Thanks for the update! I'll give her your Twitter handle.

Anne, we will investigate!

I want to create my first mobile site. I got your tutorial. Very useful. Many thanks

You could definitely see your skills within the work you write. The world hopes for even more passionate writers like you who are not afraid to mention how they believe. At all times follow your heart.

We are a gaggle of volunteers and opening a brand new scheme in our community. Your web site provided us with valuable information to paintings on. You've performed an impressive job and our entire community will be thankful to you.

I'd incessantly want to be update on new content on this site, saved to fav!

I liked it a alot. Just continue writing. Each of the best!

Howdy. Very nice web site!! Man .. Beautiful .. Amazing .. I will bookmark your website and take the feeds also...I'm happy to find so much helpful info here within the article. Thanks for sharing..

Hi there. Very cool blog!! Man .. Beautiful .. Amazing .. I will bookmark your web site and take the feeds also...I'm happy to find numerous helpful info right here in the article. Thank you for sharing...

We have several sites, but I think it's not that very easy to get money from it, I constantly combine it with other ad networks to have more income. THe thing is not all ad networks can be combine with adsense, or google will ban you. Btw, thanks in your submit.

That's what I was looking for!! Many thanks

Thank you, I have recently been looking for info about this subject matter for ages and yours is the best I have discovered so far.

Really Appreciate this blog post, can I set it up so I receive an alert email whenever there is a fresh article?

=== popurls.com === popular today...

Hi just thought i would tell you some thing. This really is the second time now i have landed on your blog within the last four days hunting for completely unrelated points. Spooky or what?

Greetings to anyone. My Corporation Is by Greece plus i possess completely new business site. Take A Look At my net site and analyze your thoughts. You Possibly Can Find a lof of creative ideas and information for my job role. It Is Really completely free 100% and without having registrator. Regards To each and every one which will go to my amazing web. It Will Help To my job. επενδύσεις πέτρας

I simply had to thank you fantastically much just the once further. I'm not undeniable what I would have ended to materialize in the absence of the authentic solutions recognizable by you regarding my field. It utterly was a valid intimidating event in my view, excluding human being intelligent to view a new specialised taste you resolved it ended me to leap above gratification. I will be present happier for this assistance as well as honestly wish you admit what a powerful occupation you are forever putting in instructing people these days with the aid of a web position. I identify that you have in no way come transversely several of us.

Sometimes when learning comes before experience It doesn't make sense right away.

Hiya, I am really glad I've found this information. Nowadays bloggers publish only about gossips and net and this is really irritating. A good web site with interesting content, this is what I need. Thanks for keeping this site, I'll be visiting it. Do you do newsletters? Can not find it.

I'm still learning from you, while I'm trying to achieve my goals. I certainly liked reading all that is written on your blog.Keep the aarticles coming. I liked it!

Not my "cup of tea" however the 36 Ford was enjoyable to read about and glance at.

I often contemplate identical point, Andrew, what a Tucker would seem like in 2012, when they would have survived. I want all those plates, but I'm able to only picture what they might go for!

das etwas andere Dating...date a filipina

Actually, I?m a blog starter. I just want more people to visit my blog to make me a popular blog. I?m capable of writing, and I know writing skill is a must. But is there any other way to make my blog more popular?.

I wish a lot more individuals would write blogs like this that are in fact beneficial to read. With all the crap floating around on the web, it is rare to read a blog like yours rather.

A person's recommendation certainly streamline existence. Extended found a number of written content in which I should have set an eye out for more, right up until I noticed your site. Congratulations are in order!

well i feel this program is losing its plot if Ved is Forced to? marry Kia . what i hate the most , a Vamp coming in wicked girl with cruel intentions , back bitching , melo drama and all such stuff. . can't tolerate this for one single day , and tolerating kia for one year for an male viewer like me is like a HEADACHE !!!. . SBS was for lite moments and not this crap !!!

As soon as I discovered this site I went on reddit to share some of the adore with them.

Dealing with web design consultants is hard with so many crooks online. Do your research and contract a recognized company with a great reputation, not just the most affordable one. Check out the website available in my name for more information

Do you have a spam problem on this website; I also am a blogger, and I was wondering your situation; we have developed some nice practices and we are looking to exchange methods with others, why not shoot me an email if interested.

Hello there! Do you know if they make any plugins to help with Search Engine Optimization? I'm trying to get my blog to rank for some targeted keywords but I'm not seeing very good results. If you know of any please share. Thanks!

Unter dem Begriff Mobile Devices vereinen sich kleine, tragbare Computer wie Notebooks, Ultrabooks, Netbooks, Tablet-PCs und Smartphones. Diese Geräte eignen sich hervorragend als mobile Kommunikationszentrale. Zahlreiche Apps ermöglichen zudem die Erledigung bürotypischer Aufgaben wie z. Bsp. die Erstellung von Angeboten, Kalkulationen, Berichten, Planungen usw. Wir bieten in unserem Shop eine Auswahl der besten Geräte auf dem Mobile-Devices-Sektor. Alle Produkte in unserem Internetshop sind verfügbar und werden nach Bestellung innerhalb von 1-3 Tagen ausgeliefert. Unser Shop ist in diversen Preisvergleichs-Portalen gelistet. Daher achten wir stets auf möglichst günstige Preise.

The next time I read a blog, Hopefully it does not fail me just as much as this particular one. After all, Yes, it was my choice to read, nonetheless I really thought you'd have something interesting to say. All I hear is a bunch of moaning about something you can fix if you weren't too busy looking for attention.

Segeln in der Karibik San Blas das letzte unberuherte Paradies , Segelabenteuerurlaub mit der Cassandra in der Karibik, Abenteuerurlaub San

Roy, that you are one of a form. We will pass up you. Calvary will not be the same with no you. Take pleasure in the next chapter in your lifestyle. You deserve the very best, as that may be whatever you gave every single day.

You made a few good points there. I did a search on the subject matter and found a good number of folks will go along with with your blog.

Almost three years ago, my old computer had many bad viruses and bad pop-ups. I have some files left on that computer and I did not see them for almost three years ago. I wonder I will like to see my old files again that I can connect to my new computer to old computer. That is problem that I am afraid which bad viruses will come to my new one from old one. Please let me know how I can get my old files move from my old computer to my new computer without bring bad viruses to my new one?.

I've recently started a website, the information you offer on this site has helped me tremendously. Thank you for all of your time & work.

This is a topic which is close to my heart... Many thanks! Where are your contact details though?

Cafe Mendelssohn, Hannover-Südstadt

Online-PR und Social Media als Schlüssel zu neuen Märkten

The race tightens...close to Romney's neck. n nToo lousy for Obama that we never have a very system that elects presidents by an electoral university with certain electorals from each individual state. That would make state polls vital and national polls with no relevance to the precise outcome could well be irrelevant. n nOh wait around...

No one will? probably?? read? this. I'll still write?? it anyway? as maybe one person will. i'm a Dubstep? Producer...ive been waiting? until i? thought my tracks where good enough?? to upload so if you?? could be so kind as? to check out my page maybe leave a little feedback and if not thats?? fine.. If? you? do like me please subscribe and Thumbs Up this comment so more people can see,? I got great stuff? coming!. Thank you soooooo? MUCH if you cared to check and? god bless.

So hold out, the president can order the assassination of American citizens without having due approach, and you do not think hes a king, but when he changes Reagan's biography, hes a tyrant?

Bei Handybundles 4 U. de gibt es zu jedem Handyvertrag eine Prämie als Geschenk. Handy Bundle Angebote mit Laptop, PC, Notebook, Computer, Kamera, Roller. Quad, PS3 und vielem mehr. Lasse Dich für deinen neuen Handyverträge Beschenken und wähle ohne Zusatzkosten ein Handy Bundle.

Nice article, I just found it, simple but it has some good that made my day. thanks! =)

Export from Europe find suppliers factories contacs parnters

zu wenig Besucher ? Dann tragen Sie Ihre Seite auf rss4u.de ein.

What a lovely day for a 2072082! SCK was here

Trennungsschmerz - Bei uns finden Sie fachkundige Unterstützung in Beziehungsproblemen

Fotoservice

I respect your work , thankyou for all the good posts .

Loving the info on this internet site , you have done great job on the content .

I am pleased that I found this web site, just the right info that I was looking for! .

Hi dee hi, I have visited your web-site a number of instances. I found out about it right from my husband. I made the decision to put up a comment. We really like a silly joke; therefore I pondered providing a new laugh with you not to mention your traffic. This guy walks into a butcher and asks, "Can I have those from the top shelf please". The butcher replies, "Sorry, the steaks are too high."

Your style is really unique in comparison to other folks I have read stuff from. Thank you for posting when you have the opportunity, Guess I will just book mark this blog.

MakCheck – Ihr Maklercheck und mehr. Auf www.makcheck.de können Sie Immobilienmakler, Architekten/ Bauunternehmen, Gutachter, Hausverwaltungen und Umzugsunternehmen bewerten und weiter empfehlen.

I want to start a blog that everyone will read. After all, my opinions are extremely important. How do I get started?.

Million Dollar Marketing Machine is offering a new way of thinking in promoting brilliance. Instead of business entrepreneurs required to get the sales on his or her own or anytime a new comer struggles getting started in their business from home... there's a new team that will help with closing the deal. The new 30K Team offers the added perk of an additional support system for business people new and old to use the experience of a dynamic sales force of masters that can close nearly any deal that really needs closing.

I want to to thank you for this excellent read!! I certainly loved every bit of it. I have you saved as a favorite to check out new things you post…

Boutique young stylisch immer wieder Neue Styles aus Mailand , Rom und Berlin

Great post, I concur completely and appreciate the time you took to write it, nice!

The World Wide Web if used appropriately can start to play a basic role with your organization and organization technique. Since more and more people are coupled to the Internet constantly through smart phones and so forth you should understand how to reach them. This post will supply some tips on Internet marketing.

Uh, well, explain me a please, I am not quite in the subject, how can it be?!...

Greetings! Very useful advice within this article! It is the little changes which will make the biggest changes. Thanks for sharing!

I wanted to thank you for this very good read!! I certainly enjoyed every little bit of it. I've got you book marked to look at new things you post…

This page definitely has all of the information I wanted concerning this subject and didn't know who to ask.

I really like it when individuals come together and share views. Great site, stick with it!

Next time I read a blog, Hopefully it won't fail me just as much as this one. After all, I know it was my choice to read, however I really believed you'd have something interesting to talk about. All I hear is a bunch of crying about something that you can fix if you were not too busy looking for attention.

You guys need to think about converting the meat of that post to a Youtube video. It would a nice thing to watch.

Find someone just to hookup in your area and have a fun.

Whats up, I have visited your webpage many instances. I got word about it from my girlfriend. I decided to put up a comment. My hubby and I like humor; therefore I talked about providing a good joke with you not to mention your visitors. Getting married is like buying a dishwasher. You'll never have to do it by hand again.

Seems scrumptious!! Great summer handle!! Strawberries and rhubarb is an awesome combination. Goes properly along with almost any drink. Do you have any much more very similar recipes? Thanks!!

Sorry if I posted twice - i refreshed the page too quickly

Very interesting points you have observed, appreciate it for putting up.

I'm not sure if my subscription info came as a result of to you nor am I clear how to pay the $5.00.
Thanks this is a excellent idea if I'm able to connect! Judy

Estoy empezando un negocio durante el verano en el que trabajo con los niños individualmente o en un campamento. Me preguntaba cómo podía iniciar un sitio web para mis clientes los padres a ver durante el verano ..

Cómo transferir archivos desde el ordenador antiguo a nuevo equipo?

Tengo un Mac y utilizar la última traducción de Firefox. Quiero que la ventana de descarga para detener a aparecer cada vez que guarde como un cuadro o poco de este modo. Por ejemplo, al abstenerse una imagen que veo en firefox, la ventana de descarga aparece diciendo lo que he descargado y esas cosas. ¿Cómo puedo conseguir que la ventana emergente para detener a aparecer cada vez que quiero salvar poco a mi ordenador (como una imagen) en Firefox? No puedo encontrar nada en las preferencias en Firefox tampoco. POR FAVOR AYUDA!.

¿Cómo puedo poner la aprobación comentario en tu blog en mi myspace para aprobar los comentarios del blog antiguamente de enviarlos?

Loving the information on this site, you have done great job on the blog posts.

I just serch on google and found The Best Area Rug Cleaning NYC and New York County 18 1-800- CLEAN MY RUG information! Thank you for your great work!!

Lovely just what I was looking for.Thanks to the author for taking his clock time on this one.

It's super ! I love it ! I back to you later again ! Amazing :)

It's super ! I love it ! I back to you later again ! Amazing :)

Hice una cuenta de blogger hace unos meses, y he añadido algunas fotos para mi lateral y no sabe cómo eliminarlos. Ayuda? Gracias ..

¿Cuál es el mejor software para diseño de sitios web y blogs?

OUTRAGEOUS! He is a dictator! And I am confident we'll uncover a great deal a lot more about him after he's outside of office. OMG = Obama Will need to Go!

i really love to read this blog i hope i can spend more time to read this thank you fot posting.

How did you make this site look this cool. Email me if you get the chance and share your wisdom. .

I've always liked this type of article. Smart and relevant, and now for your other stuff! Thanks

Swift Tricks In Philly car accident lawyers - Easy Ideas

Hubert H. Humphrey Institute of Public Affairs