Question
Minimum wage is one way for the government to help people with low-paying jobs to afford basic goods. Another way to achieve this goal is with _____.
Less personal income
More taxes
The Earned Income Tax Credit
Answer:
Earned income tax credit
Step-by-step explanation:
The earned income tax credit or EITC is tax credit for working people with low income. Government offers EITC to people like this to reduce their tax liability and in essence help them afford basic necessities or goods as an alternative. This is an alternative to minimum wage although government can offer both at the same time.
People that qualify for Earned income tax credit are however required to file tax returns even if they don't owe any tax as a result of reduced liability from EITC. This will determine their tax liability or refund.