Administrative Burden

Administrative Burden

Policymaking by Other Means

Pamela Herd, Donald P. Moynihan

From an employer perspective, the EITC is a subsidy for low wages paid for by taxpayers, whereas increases in the minimum wage are borne directly by business owners. As business interests realized that the EITC offered an attractive political alternative to minimum wage increases, they became strong supporters, helping ensure a level of bipartisan support that eluded other targeted programs.

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