Federal Tax Policies and Low-Income Rural Households

Ron Durst and Tracey Farrigan

No 291946, Economic Information Bulletin from United States Department of Agriculture, Economic Research Service

Abstract: The authors analyze the increasing use of refundable tax credits targeted to low- and moderate-income households in the Federal individual income tax and determine their implications for rural America. To identify rural and urban households, the analysis matches a zip code approximation of the 2006 Rural-Urban Commuting Area Codes with Internal Revenue Service Individual Income Tax zip code and related data. These data are then used to examine the impact of the recent expansions to income tax credit programs on affected households. The analysis finds that expansions to both the refundable and nonrefundable portions of the Earned Income and Child Tax credits have provided a major source of income support for low-income workers and their families. This is especially true in the South, where the rural poor are concentrated.

Keywords: Community/Rural/Urban Development; Financial Economics; Food Security and Poverty (search for similar items in EconPapers)
Pages: 27
Date: 2011-05
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/291946/files/7446_eib76.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uersib:291946

DOI: 10.22004/ag.econ.291946

Access Statistics for this paper

More papers in Economic Information Bulletin from United States Department of Agriculture, Economic Research Service Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search (aesearch@umn.edu).