[intopieces]

Yes, which is then negated with rebates / negative income tax.

[oarsinsync]

So the end result is... lower taxes all around? Where does the deficit get made up?

[intopieces]

High income earners don’t get the credit. Similar to how there is an income cap on incentives for EVs in California

[oarsinsync]

But high income earners still benefit from a lower effective rate from the change.

If low income earners pay a higher effective rate than they would under income taxation, which is to be neutralised by credits, and higher income earners pay a lower effective rate, who makes up the deficit?