The New Jersey/Pennsylvania Graduated Work Incentive Experiment Tax Rebate System

Publisher: Mathematica Policy Research
Sep 30, 1971
Authors
Jerilyn Fair, Anne Freeman

Key Findings:

  • The administrative experience in these two states could be extended to a nationwide program.
  • The study estimates could be a good starting point for estimating the costs of a national income maintenance program. 
The Office of Economic Opportunity, created by the Johnson Administration to administer anti-poverty programs, funded a study of 1,300 low-income families in urban communities in New Jersey and Pennsylvania. This report summarizes the system of income tax rebates used in the study to produce constant marginal tax rates from zero income to the tax break-even point, where income less federal tax paid is equal to the guarantee level.