Employment Incentive Act of 1988

[AI summary unavailable — showing source text] Employment Incentive Act of 1988 - Title I: The Family Earned Income Tax Credit - Amends Internal Revenue Code provisions governing the earned income tax credit to: (1) increase from $5,714 to $7,143 the amount of earned income subject to the credit; and (2) increase the credit percentage incrementally from 14 percent to 35 percent, adjusted annually for inflation, as the number of the taxpayer's dependent children increases from one to four or more. Title II: Child Care Tax Credits - Allows an individual taxpayer a refundable income tax credit, in an amount based on adjusted gross income (minimum credit of $150), for each dependent below the age of compulsory school attendance in the State where the taxpayer resides. Disallows application of the nonrefundable dependent care income tax credit with respect to a taxpayer's dependents under age 15, unless the child is physically or mentally incapable of self-care. Title III: Child Support Tax - Imposes a child support tax on every liable absent parent (one who is absent on other than a temporary basis, who has a legal obligation under State law to furnish child support, and whose whereabouts are known). Bases the rate of the tax (maxi…