The Earned Income Tax Credit (EITC) was incepted in the year nineteen hundred and seventy-five. The program is a tax cushion meant for both low-income and middle- income working individuals. It is aimed at offsetting payroll and income taxes and in the process, increase the amount of cash available for disposal. It has in recent years expanded considerably and currently; it is the most effective anti-poverty program present in the United States. Workers receive a credit similar to the percentage of their income up to the established maximum credit limit (Dahl & Lance, 2012). As per two thousand and three, a total of twenty-two million families had received the EITC payments, and the amount that had been disbursed by then was 38.7 billion dollars. The objective of EITC has been to transfer income; promote equal distribution of resources and while in the process encouraging citizens to work.

The program has received significant political support over the years, and its prominence has been on the rise previously, and the proprietors have shifted the focus to limit the reliance that may be promoted by the welfare plans contained inside Earned Income Tax Credit. To be a beneficiary of EITC, the low- income workers must have filed a tax return. It is implemented under the Internal Revenue Service (IRS). Elssa & Hilary (2004) found out that this approach adopted has various advantages which are inclusive of reducing administrative costs; it has proved to be efficient; has over seventy-five percent participation nationwide and it is independent of employer cost as no employer is required in filing documentation for an employee. Discussed are some of the benefits.

Promotion of working culture; Encouraging and Rewarding work.

No other single program encourages individuals to work in the U.S than the Earned Income Tax Credit. The program is designed to change the attitude of people towards as an activity that is enjoyable to engage in and particularly encourages single parents, and it makes work attractive by offering attractive waged and salaries and also improving the working conditions ( Ellwood,2000 pp1063-1105). The program has the strongest working incentive in the labor market; it allows an individual to choose the hours that they feel to dedicate to working. The freedom of choosing working hours serves to the best interest of single mothers as it only allows them to work when they are free from parenting roles like when the children are in schools. The incentive further allows the single parents to choose the number of hours that they feel they need to work and they have the option of increasing the number of workings if they need some extra cash that they can use to meet other family needs.