The EITC increases the labor supply of mothers, which leads to increases in payroll and sales taxes paid.
The EITC decreases dependence on government transfer spending.
Evaluated over a one-year period, the net EITC cost is only 17 percent of the $70 billion annual budgetary cost.
Evaluated over a longer-time horizon, the net EITC cost is lower and perhaps zero.
The 2009 EITC expansion continued to increase maternal labor supply and earnings.