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Full-Text Articles in Business
The Eitc: Expectation, Knowledge, Use, And Economic And Social Mobility, Timothy M. Smeeding, Katherine Ross Phillips, Michael O'Connor
The Eitc: Expectation, Knowledge, Use, And Economic And Social Mobility, Timothy M. Smeeding, Katherine Ross Phillips, Michael O'Connor
Center for Policy Research
This paper presents initial findings on the economic impact of the Earned Income Tax Credit (EITC) based on a sample of Chicago area households that filed tax returns in the spring of 1998. Respondents reported on their detailed use of the funds to pay bills, purchase new items, or save. Asset information on the households was also gathered, along with questions regarding the ability of households to make particular expenditures without the help of the EITC. Uses of the EITC are divided into those that improve social mobility (e.g., purchase a car, pay tuition, change housing) and those that primarily …
Estate Taxes, Life Insurance, And Small Business, Douglas Holtz-Eakin, John Phillips, Harvey Rosen
Estate Taxes, Life Insurance, And Small Business, Douglas Holtz-Eakin, John Phillips, Harvey Rosen
Center for Policy Research
One criticism of the estate tax is that it prevents the owners of family businesses from passing their enterprises onto their children. The problem is that it may be difficult to pay estate taxes without liquidating the business. A natural question is why individuals with such concerns do not purchase enough life insurance to meet their estate tax liabilities. This paper examines whether and how people use life insurance to deal with the estate tax. We find that, other things being the same, business owners purchase more life insurance than other individuals. However, on the margin, their insurance purchases are …