The lump-sum payment of the federal Earned Income Tax Credit (EITC) doesn’t meet the day-to-day needs of working families, and policymakers should consider reforms to space out EITC payments, according to a new brief from the Brookings Institute. Want to Help the Working Class? Pay the EITC Differently argues that this simple EITC reform could help low-wage workers use the credit more effectively and potentially build savings. Periodic payment of the EITC may have bipartisan appeal, with both Democratic and Republican lawmakers endorsing versions of the reform in recent years, according to the brief.
