example, according to the Tax Policy Center, for a single-parent family with two children in 2013, the credit is

not reduced at all (but neither is it increased) as earnings rise from $13,430 to $17,530. Then, for every $1

earned above $17,530, the amount received from the credit is reduced by 21.06 cents, until the credit phases

out completely at an income level of $46,227.

Figure 15.5 illustrates that the earned income tax credits, child tax credits, and the TANF program all cost the

federal government money—either in direct outlays or in loss of tax revenues. CTC stands for the government

tax cuts for the child tax credit.

FIGURE 15.5 Real Federal Spending on CTC, EITC, and TANF, 1975–2016 EITC increased from under $10 billion in

the late 1980s to almost $42 billion in 2000 and to over $61 billion in 2016, far exceeding estimated 2016 outlays

in the CTC (Child Tax Credits) and TANF of over $25 billion and $18 billion, respectively. (Source: Office of
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