Tax Credit Reform Calculator

This application calculates the distributional impact of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) by household type.

By clicking ‘customize parameters,’ users can design and test proposals for reforming either credit, or replacing them altogether, while automatically generating charts that illustrate the net-effect of the reform on household incomes and Effective Marginal Tax Rates (EMTRs). This allows users to test complementary reforms and to see how their reforms interact with other programs, including state-level EITCs.

The presets are based upon the Family Security Act, released by Senator Mitt Romney in 2021, which proposes replacing the CTC with a flat child allowance while converting the EITC into a simplified worker credit. Another preset is the Biden administration’s CTC expansion included in the Biden administration’s COVID-19 relief package.

[Note: calculator may take a few seconds to load]