Suggest an alternative method of calculating the EITC that reduces this penalty for low-income workers
Suggest an alternative method of calculating the EITC that reduces this penalty for low-income workers
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suggest an alternative method of calculating the EITC that reduces this penalty for low-income workers
A.To counter this effect, the EITC could be amended so that the highest of the two spouses’ salaries determined the family income, it could provide for a much longer plateau before phase-out for two-earner families, or it could be applied to individual incomes, regardless of marital status, rather than to family income.
B.To counter this effect, the EITC could be amended so that the average of the two spouses’ salaries determined the family income, it could provide for a much longer plateau before phase-out for two-earner families, or it could be applied to individual incomes, regardless of marital status, rather than to family income.
C.To counter this effect, the EITC could be amended so that the average of the two spouses’ salaries determined the family income, it could provide for a much longer plateau before phase-out for two-earner families, or it could be applied to combined incomes, regardless of marital status, rather than to family income.
D.To counter this effect, the EITC could be amended so that the highest of the two spouses’ salaries determined the individual income, it could provide for a much longer plateau before phase-out for two-earner families, or it could be applied to combined incomes, regardless of marital status, rather than to family income.
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