ERIC Number: ED345859
Record Type: RIE
Publication Date: 1992-Mar-3
Reference Count: 0
1992 Tax Relief Proposals: A Small Return for Women and Children [and] Questions and Answers about the Earned Income Credit and the Child and Dependent Care Credit.
Sagawa, Shirley; Campbell, Nancy Duff
Several tax proposals before the U.S. Congress in 1992 are intended to provide relief to middle-income families. This report analyzes the key tax proposals to determine their adequacy in helping low-income families. The proposals fall into four general categories, those involving: (1) an increase in the personal exemption for dependents; (2) the creation of a credit based on payroll taxes; (3) the creation of a children's credit; and (4) modifications of child-related credits, including the earned income credit and the dependent care tax credit. In order to measure the effects of the tax proposals on low-income families with children, the implications of each proposal for two hypothetical representative families were investigated. In one family, a single mother with two children earns five dollars an hour. The other family, which also has two children, involves two parents, each of whom earns five dollars an hour. This report suggests that the primary component of tax relief should be a refundable children's credit; the earned income credit should be simplified and expanded; and the dependent care tax credit should be indexed and made refundable. Appended materials include a series of 22 questions and answers about the earned income credit and the child and dependent care credit; a list of Internal Revenue Service and other tax assistance phone numbers; and samples of a press release and newsletter article describing tax credits. (BC)
Publication Type: Legal/Legislative/Regulatory Materials; Opinion Papers
Education Level: N/A
Authoring Institution: National Women's Law Center, Washington, DC.
Identifiers: Tax Equity