Matching Pairs Final Group Assignment- WolverineOnline version Public Finance. EITC and Medicare by todd kimball 1 Substitution effect 2 What was the purpose of the Tax Reduction Act of 1975? 3 Part B 4 Income Effect 5 Phase-in 6 Part A 7 Medicare is available for... 8 Peak 9 Phase-out 10 How is Medicare funded? 11 How was the EITC considered both an anti-poverty program as well as an alternative to welfare? 12 Requirements to receive Earned Income Tax Credit Process by which EITC is applied (also called Original Medicare) is managed by Medicare and provides Medicare benefits and coverage for: Inpatient hospital care. Inpatient stays in most skilled nursing facilities. Workers may reduce hours because the credit allows them to meet their needs with less hours of work By payroll taxes paid by most employees, employers, and people who are self-employed. Other sources include, Income taxes paid on Social Security benefits, interest earned on the trust fund investments. Workers that are in this stage will work less hours because the value of the credit decreases for every extra hour worked. By providing incentives to work. 1.) Have earned income; 2.) Be a U.S. citizen or resident alien for the entire tax year; 3.) Have a valid Social Security number people 65 or older, younger people with disabilities and people with End Stage Renal Disease(permanent kidney failure requiring dialysis or transplant) to be a temporary refundable tax credit for lower- income workers to offset the social security payroll tax (medical insurance) is part of Original Medicare and covers services and supplies that are medically necessary to treat your health condition. This can include outpatient care, preventive services, ambulance services, and durable medical equipment. the credit may make working more valuable than not working Point a which EITC has an income effect causing workers to work fewer hours.
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