Why does the EITC exacerbate the marriage penalty for low-income workers? Group of answer choices 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. 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. 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. 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.
Why does the EITC exacerbate the marriage penalty for low-income workers? Group of answer choices 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. 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. 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. 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.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter26: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 4CQ
Related questions
Question
Why does the EITC exacerbate the marriage penalty for low-income workers?
Group of answer choices
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.
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.
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.
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.
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