The In Work Tax Credit (IWTC) was introduced as part of the Working for Families package that was phased in between 2005-2007. While New Zealand’s IWTC may, on the surface, appear similar to the Earned Income Tax Credit (EITC) in the US, and to the Working Tax Credit in the UK, there are important differences. This paper contributes to the international pool of knowledge about the design and impact of in work benefits.
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Can the ‘In Work Tax Credit’ be justified as an in-work benefit?