<P> Proponents argue that a basic income that is based on a broad tax base would be more economically efficient, as the minimum wage effectively imposes a high marginal tax on employers, causing losses in efficiency . </P> <P> A guaranteed minimum income is another proposed system of social welfare provision . It is similar to a basic income or negative income tax system, except that it is normally conditional and subject to a means test . Some proposals also stipulate a willingness to participate in the labor market, or a willingness to perform community services . </P> <P> A refundable tax credit is a mechanism whereby the tax system can reduce the tax owed by a household to below zero, and result in a net payment to the taxpayer beyond their own payments into the tax system . Examples of refundable tax credits include the earned income tax credit and the additional child tax credit in the US, and working tax credits and child tax credits in the UK . Such a system is slightly different from a negative income tax, in that the refundable tax credit is usually only paid to households that have earned at least some income . This policy is more targeted against poverty than the minimum wage, because it avoids subsidizing low - income workers who are supported by high - income households (for example, teenagers still living with their parents). </P> <P> In the United States, earned income tax credit rates, also known as EITC or EIC, vary by state--some are refundable while other states do not allow a refundable tax credit . The federal EITC program has been expanded by a number of presidents including Jimmy Carter, Ronald Reagan, George H.W. Bush, and Bill Clinton . In 1986, President Reagan described the EITC as "the best anti poverty, the best pro-family, the best job creation measure to come out of Congress ." The ability of the earned income tax credit to deliver larger monetary benefits to the poor workers than an increase in the minimum wage and at a lower cost to society was documented in a 2007 report by the Congressional Budget Office . </P>

When did the national minimum wage go up