April 23, 2019 | Investopaper
One of the greatest investors of this century, Warren Buffet, recently said in an interview that the Earned Income Tax Credit (EITC) can be the best way to address the existing income inequality.
The CEO of Berkshire Hathaway said that he thinks the Earned Income Tax Credit is the best way to put money in the pockets of people that don’t fit well under the market system, but that are perfectly decent citizens.
The United States federal earned income tax credit or EITC is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children.
He further said that the reason for his inclination towards EITC was because it rewards work. This would help them to have a feeling of accomplishment. He argued that EITC is more effective than raising a minimum wage.
He suggested that raising the EITC can help more people feel part of the economic system.
According to January 2019 analysis of Census data from the Center on Budget and Policy Priorities, more than 29 million Americans received the EITC IN 2017.