This article places issues concerning reformation of the EITC in perspective and critiques existing proposals to change the program. This article focuses on proposals advanced by Professors Yin and Forman which range from improving the administration of the existing EITC to completely restructuring the entire program.
Specifically, this article analyzes and responds to their proposals to (1) redesign the Earned Income Tax Credit by creating a system that uses a rebate of employee Social Security payroll taxes in conjunction with a family allowance benefit, and (2) institute an employer credit program as a substitute for the Earned Income Tax Credit. In order to more completely understand and evaluate the feasibility of the Yin and Forman proposals to modify the EITC, it is useful to examine the effectiveness of the existing EITC program.
Accordingly, part I of this article discusses the limitations of the current EITC program. Part II briefly describes the effects of recent changes to the EITC program under the Omnibus Budget Reconciliation Act of 1993 ("the 1993 Act"). Part III explores two of the Yin and Forman proposals to redesign the EITC and analyzes the policy and equity concerns which these proposals raise. Part IV contains a brief conclusion.
Regina T. Jefferson, The Earned Income Tax Credit: Thou Goest Wither? A Critique of Existing Proposals to Reform the Earned Income Tax Credit, 68 TEMP. L. REV. 143 (1995).