Which of the following statements is correct?
A)A disadvantage of a minimum-wage law is that it may benefit unskilled workers who are low-income workers.
B)A disadvantage of a negative income tax program is that a poor person who chooses not to work many hours would not receive a cash benefit.
C)There are no disadvantages to minimum-wage laws, negative income taxes, or the Earned Income Tax Credit (EITC).
D)A disadvantage of an Earned Income Tax Credit (EITC) is that a person who is unable to work due to a disability does not benefit from the program.

Question

Quizplus · Accepted Answer

The Earned Income Tax Credit (EITC) is designed to benefit working individuals and families, particularly those with children, by providing a refundable tax credit based on income and family size. However, because it is contingent on earned income, individuals who are unable to work due to disabilities and thus do not have earned income would not benefit from the EITC, highlighting a disadvantage of the program for this specific group.

Which of the Following Statements Is Correct