Association for Public Policy Analysis & Management

Panel: Nudging and Educating EITC Claimants in Tax Compliance, Refund Saving Behavior, and Beyond

(Public and Non-Profit Management and Finance)

The Earned Income Tax Credit (EITC) is a major social policy that is administered through the tax code, and delivered in the form of a tax refund. Evidence suggests that applying insights from the field of behavioral economics presents opportunities for both innovation and improvement to the EITC program and administration.

In this panel, we will explore several themes through a discussion with a diverse group of academic, government, and private sector experts. The panel will focus on the following:

(1) the theoretical background for behavioral economics insights that may contribute to tax compliance and savings behavior,

(2) government and private sector evidence testing these insights, including:

• a Taxpayer Advocate Service study that examines whether written communications with taxpayers improved subsequent compliance with the EITC
• evidence from a randomized control trial testing the effectiveness of refund savings nudges on EITC tax filers

(3) scholarship that suggests that the government should supplement traditional compliance measures with approaches that apply insights from the field of behavioral economics.