The Anti-Poverty Program That Transcends Divides

Upon filing their 2016 taxes, families earning between $39,300 and $53,500 a year can catch a little break—a tax break, that is. Depending on their marital status and family size, those within this income bracket can cash in on the Earned Income Tax Credit (EITC) in a few weeks. And the extra thousands in refunds can help them settle past-due bills and debts, pay for things their kids need, and fund home and car repairs.

EITC was born in the 1970s, inspired by a poverty assistance plan put forth by—and this might come as a surprise—Richard Nixon. Over the next few decades, the program was expanded under both Democratic and Republican administrations. Ronald Reagan called it “the best anti-poverty, the best pro-family, the best job creation measure to come out of Congress.” And he wasn’t wrong: since its inception, EITC has helped pull people out of poverty, boosted employment, and improved the mental and physical health of participants and their kids. With a few exceptions, the program has enjoyed bipartisan support, and a new analysis by the Brookings Institution shows why.