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Weekly News Round-Up: January 6, 2012 | Tax Credit for Working Families

Tax Credits for Working Families

Weekly News Round-Up: January 6, 2012

January 6th, 2012

Here are some highlights from this week’s news on family tax credit issues. Remember – you can also track news coverage throughout the week by visiting our RSS feed, where you can filter news by a specific credit and/or state.

  • Oklahoma’s Task Force on Comprehensive Tax Reform is recommending eliminating dozens of tax credits and breaks as a way to cut the state’s top personal income tax level and the corporate income tax. Among the credits the task force has suggested eliminating are the state Earned Income Tax Credit, Child and Dependent Care Tax Credit, and property tax circuit breaker. (State Impact, The Republic)

  • Iowa Senate Majority Leader Michael Gronstal (D-Council Bluffs) says a property tax relief package will not clear the split-control Legislature during the 2012 session unless Republican Gov. Terry Branstad agrees to sign an increase to the state Earned Income Tax Credit that he vetoed twice last year. A coalition of Iowa groups is calling on legislators to increase the EITC from seven percent of the federal credit to 20 percent. (Radio Iowa, Eastern Iowa Government)

  • The Tax Policy Center has released analyses of Rick Santorum and Mitt Romney’s tax plans. Santorum aims to use tax policy as social policy to promote traditional marriage and families, and would triple the personal exemption for dependent children and keep the refundable Earned Income Tax Credit and Child Tax Credit (although it’s unclear whether he would keep the ARRA expansions of those credits). Romney would end President Obama’s 2009 stimulus tax reductions, including the expanded Child Tax Credit and Earned Income Tax Credit. (Tax Vox 1, 2)

  • Two bills introduced in Maine would make it harder for Maine residents to get property tax relief. The state’s property tax circuit breaker was cut by 20 percent  in the latest biennial budget. The new bills would require renters to provide proof they paid rent, thus adding an additional paperwork requirement, and would reduce the credit when localities gave low income renters a tax break. (Maine Center for Economic Policy)

  • Kentucky Rep. Jim Wayne (D-35) has pre-filed tax reform legislation that the General Assembly will consider this month. Among other changes, Wayne proposes a state Earned Income Tax Credit, which he says would lower taxes on more than 360,000 Kentucky families. (Kentucky.com)

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