MassBudget: Rewarding Work: The Minimum Wage and Tax Credits
Massachusetts Budget and Policy Center
Rewarding Work: The Minimum Wage and Tax Credits
Rewarding Work: The Minimum Wage and Tax Credits discusses the important roles played by both the Earned Income Tax Credit (EITC) and the minimum wage in expanding economic opportunity for low-wage workers. This Facts At A Glance finds that the EITC and a strong minimum wage are complementary policies:
The EITC is particularly effective at helping those lower-income working families with children.
The EITC works best when coupled with a strong minimum wage to mitigate any downward pressure on wages.
While a very effective wage supplement for many low-wage working families, the scale and scope of a state EITC can't substitute for adequate wages.
This Facts At A Glance also examines an employer tax break related to the minimum wage that was recently adopted in New York, one that creates a variety of problems for low-wage workers.
The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts.
MASSACHUSETTS BUDGET AND POLICY CENTER
15 COURT SQUARE, SUITE 700
BOSTON, MA 02108
Massachusetts Budget and Policy Center | 15 Court Square | Suite 700 | Boston | MA | 02108