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Earned Income Tax Credit /'urnd · 'in-kum · 'taks · 'kre-dit/
A feature of the federal, and many state, tax system that operates as a negative income tax for low-wage workers. For every dollar that these low-wage workers earn the federal government contributes 41 cents. The EITC is a refundable credit. Research shows that a locally operated EITC is more effective at reducing poverty than a living wage.
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