Evaluating State EITC Options for California
In recent years, California and other states have either considered or developed their own earned income tax credit (EITC) plans to supplement the federal EITC. A well-targeted state EITC can support various policy goals by supporting low-income families and increasing their incentives to work. This report lays out four distinct approaches to a state EITC and tests them against three criteria: their effects on work incentives, the distribution of benefits by family type, and cost. It finds that if California wishes to implement its own EITC, it should not simply “add on” to the federal plan. Rather, it should design a program that considers a family’s hourly wages as well as its earnings.
The Earned Income Tax Credit in California
What Happens to Families When They Leave Welfare?
Does California's Welfare Policy Explain the Slower Decline of Its Caseload?
California Counts: Recent Trends in Income and Poverty
How Living Wage Laws Affect Low-Income Workers and Low-Income Families
Increasing the Minimum Wage: California's Winners and Losers
Health & Human Services