Political Determinants of State-Level Earned Income Tax Credit Legislation

• In Event: 594 - Section on Political Sociology Roundtable Session (one-hour).
  In Refereed Roundtable: Table 07. The Politics of Public Policy

Abstract

This paper assesses the relationship between principal welfare state theories – with particular emphasis on the power resources (PRT) approach – and the presence and generosity of state-level Earned Income Tax Credit (EITC) programs. While much research examines the way federal tax policies redistribute resources, less research explores the antecedents of such programs and how they impact citizens across states. State legislators have substantial discretion to shape EITCs. Approximately half of all states have chosen to augment the federal EITC program by providing additional targeted tax breaks to working citizens and their families. Using data that span 1980-2007, we empirically assess the political determinants of state-level EITC programs and their generosity. Somewhat surprisingly, this research reveals that state legislatures dominated by Republicans have been tied to an increased presence of a state-augmented EITC program. Yet, consistent with PRT, key findings reveal that, net of other factors, Republican dominance in state legislatures is also associated with less generous EITC programs.

Authors

• Stephanie L. Bradley, Florida State University

• Daniel Tope, Florida State University