Myths and Facts about an Earned Income Tax Credit in Kentucky
September 4, 2012
The federal Earned Income Tax Credit (EITC) is widely known as a highly effective antipoverty program that helps low-income families make ends meet and provides long-term benefits for children. In 2010 it lifted 6.3 million individuals out of poverty. To further capitalize on the success of the program, 25 states have adopted state EITCs linked to the federal credit. The Kentucky Chamber of Commerce, however, raises concerns about an EITC for Kentucky in their recent publication, “Should Kentucky Adopt a Credit that is Based on the Federal Earned Income Tax Credit?” This paper’s claims about EITCs deserve closer scrutiny.