The earned income tax credit (EITC), available to low-income working families, phases out as earnings rise. Because the phaseout is based on family earnings, it creates a marriage penalty, such that many couples are better-off if they are unmarried than if they are married. This penalty disincentivizes marriage between parents, contributing to a high share of children being raised by single parents.

Give families a $1,000 rebate if they have incurred an EITC marriage penalty. This policy would partly (or fully) negate the disincentive to marrying caused by the EITC.