The Earned Income Tax Credit is a federal refundable tax credit designed to encourage work, offset federal payroll and income taxes, and raise living standards for low- and middle-income working families. Introduced in 1975, the EITC has grown to be one of the largest and least controversial elements of the U.S. welfare state, with 26.7 million recipients sharing $63 billion in total federal EITC expenditures in 2013.
Citation: Economics of Means-Tested Transfer Programs in the United States, Volume I, Robert A. Moffitt, ed. Chicago: University of Chicago Press. 2016.