Federal Reserve Bank of San Francisco

Community Development

Community Investments Vol 21, Issue 1
San Francisco Works to Support Working Families

Author(s): Vivian Pacheco

Spring 2009

Community Investments

The Earned Income Tax Credit (EITC) is a federal tax benefit for low- and moderate-income workers that helps offset their tax burden and increase the returns to work. In 2005, the EITC helped lift 5 million people out of poverty, including 2.6 million children—in fact, the EITC lifts more children out of poverty than any other federal program. For some workers, the EITC can represent a 40 percent pay increase.

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