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Simpler code can get more on EITC

It is distressing that millions of Americans trying to make their own way are not benefitting from a government assistance program that enjoys wide support. Still, we're not certain what &emdash; if anything &emdash; can or should be done about it.

Members of Congress this week received a report stating that about 4.3 million taxpayers who were eligible for the Earned Income Tax Credit did not take it in 1999. The EITC provides income tax credits for low-income working people. In some cases it can provide tax refund checks even for those who do not owe any taxes.

Congressional auditors who prepared the report offered no explanations for why about one-fourth of those eligible for the EITC did not claim it. They did offer some interesting numbers, however. For example, fewer than half of eligible adults without children claimed the credit &emdash; but more than 90 percent of those with one or two children took advantage of it. Strangely enough, a lesser percentage of those with more than two children got the credit. Still, the report indicates that taxpayers with children are more likely to participate in the program.

Some members of Congress expressed concern that use of the EITC is not more widespread. "We are very concerned," said a spokesman for U.S. Rep. William Coyne, D-Pa., who requested the report.

Indeed, less than full participation in the program is puzzling. In effect, those who do not take the credit are either paying more taxes than necessary or, in some cases, missing out on checks from Uncle Sam.

But government makes substantial efforts to inform taxpayers of the program, both in public information campaigns and in tax return packets. And participation in the EITC is higher than in some other programs, such as food stamps and Medicaid, intended to help low-income Americans.

We doubt additional education campaigns will do much good to encourage those eligible for the EITC to take it &emdash; but there is one means by which additional participation might be gained. It has been pointed out that in some cases, it is difficult for taxpayers to complete forms needed to obtain the credit. That should surprise no one, given the complexity of the U.S. tax code. Simplifying it would help not just low-income Americans now missing out on the EITC, but virtually all other taxpayers as well.