Senate wants study of earned-income tax
WASHINGTON — The U.S. Senate on Tuesday adopted by unanimous consent an amendment by Sen. Jeff Sessions, R-Mobile, that mandates the U.S. Treasury Department to study the impact of potential changes to the existing earned-income tax credit.
Under the amendment to the Senate minimum wage bill, the secretary of the treasury must report to Congress on costs and barriers to workers and businesses if the EITC is administered to all beneficiaries through their workplaces.
Under current law, eligible workers have the option of receiving EITC payments through their employers or in an annual lump sum, although most choose the lump sum.
Sessions said providing the EITC to eligible workers through their regular paychecks rather than in a lump sum would provide more incentive to continue working and increase wages by nearly $1 per hour.
The Senate is currently debating its minimum wage proposal, and a vote could come later this week.
- Franklin Harris
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