The Financial Freedom Act is brought to you by the Foundation for a Better Economy

ENGINEERING ECONOMIC VITALITY FOR ALL

© 2019 The Foundation for a Better Economy, Boulder, CO

HOW EARNED INCOME CREDITS WORK

Earned Income Credits Incentivize Work

Today, welfare recipients lose their benefits if they work, trapping people in a cycle of poverty. Under the Financial Freedom Act, citizens would receive credits for jobs earning less than $30,000.

A payments tax would generate sufficient revenue

to pay the schedule of credits set forth below.

Income Bracket

$0–$10,000

$10,001–$20,000

$20,001–$30,000

Earned Income Credit

50%

35%

25%

Based on this schedule, someone who takes a job and earns $10,000 would take home $15,000. Plus they would receive basic income.