The tax system has a significant impact on financial security for all families in Delaware, both directly through its role in the distribution of society's resources and indirectly through its effects on the incentives for economic decisions such as working, spending and saving.

The EITC is the nation's most effective anti-poverty program for working families. The federal Earned Income Tax Credit was introduced in 1975 and was designed to offset federal income taxes, social security payroll taxes and supplemental earnings while rewarding work. The EITC serves many public policy goals including: reduce child poverty, cut taxes for low-income families, increase incentive to work, stabilize income and spur consumption. The federal EITC reduces the amount of taxes owed and refunds the difference if the credit is larger than the amount owed.

The tax system has a significant impact on financial security for all families in Delaware, both directly through its role in the distribution of society's resources and indirectly through its effects on the incentives for economic decisions such as working, spending and saving.

The EITC is the nation's most effective anti-poverty program for working families. The federal Earned Income Tax Credit was introduced in 1975 and was designed to offset federal income taxes, social security payroll taxes and supplemental earnings while rewarding work. The EITC serves many public policy goals including: reduce child poverty, cut taxes for low-income families, increase incentive to work, stabilize income and spur consumption. The federal EITC reduces the amount of taxes owed and refunds the difference if the credit is larger than the amount owed.