The government should use a portion of oil revenues to fund an Earned Income Tax Credit (EITC) program to help lift families out of poverty and put them on a path to prosperity. It also incentivizes work as opposed to discouraging it resulting in greater labour market activities and improvement in social and economic well-being. The EITC is one of the most successful anti-poverty reduction policies and a better option than direct cash transfers. In addition to lifting poor and low-income families out of poverty, the EITC has been successful in growing the tax base and reign in informal activities in the formal economy.
Taxes represent our collective effort to support core public services and institutions critical for building a robust economy and successful communities. The Budget & Policy Institute works to promote a tax system that not only provides sufficient resources, but is fair and progressive where everyone pays their fair share while collectively caring for those who are less fortunate.