Tax Credits for Working Families

News Round-up: July 27, 2015

July 27th, 2015

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

  • The Michigan legislature adjourned for a three-week recess before deciding whether or not to eliminate the state’s Earned Income Tax Credit (EITC) as part of a road funding package (Detroit Free Press, Mlive).
  • California created a state EITC this spring, and advocates have already introduced plans to expand the credit (Sacramento Bee).

Continue Reading »

Tags: , , , , , , , ,
Kate Skochdopole Posted in Recent Updates, Weekly News Round-Up | No Comments »

New Study Shows EITC is Even More Effective at Increasing Employment, Reducing Poverty

July 24th, 2015

By Kate Skochdopole

The EITC is even better than we thought.

A study released this month in The National Bureau of Economic Research revealed researchers have previously underestimated the effect of the federal Earned Income Tax Credit (EITC) on reducing poverty. Hillary Hoynes of the University of California/Berkeley and Ankur J. Patel of the U.S. Department of the Treasury, found that among families headed by single women, policy-induced EITC increases of $1,000 boosted employment by 7.4 percent and decreased the share of these families below the poverty line by 9.4 percent.  That means the credit is twice as effective at reducing poverty as originally thought.

Continue Reading »

Kate Skochdopole Posted in Earned Income Tax Credit, Recent Updates | No Comments »

News Round-up: July 20, 2015

July 20th, 2015

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

  • House Democrats in Michigan unveiled their road funding proposal, which preserves the state’s EITC and raises the corporate income tax to pay for transportation projects. The GOP-led legislature is unlikely to accept the plan as it considers a funding bill passed by the Senate (MLive, Detroit Free Press).

Continue Reading »

Tags: ,
Kate Skochdopole Posted in Recent Updates, Weekly News Round-Up | Comments Off

What the EITC’s Increasing Popularity in the States Could Mean for Presidential Politics

July 16th, 2015

By Kate Skochdopole

Presidential candidates seeking tax breaks for working families should look to the states for inspiration.

It’s been a landmark year for state-level progressive Earned Income Tax Credit (EITC) legislation. California recently became the 27th state (including the District of Columbia) to offer an EITC of its own, and Maine made its credit refundable last week. Massachusetts, New Jersey and Rhode Island passed legislation to increase their state EITCs to a higher percentage of the federal credit. Republican and Democratic governors approved these measures with support from lawmakers on both sides of the aisle.

Continue Reading »

Tags: , , , , , ,
Kate Skochdopole Posted in Recent Updates | Comments Off

News Round-up: July 13, 2015

July 13th, 2015

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

  • Maine adopted legislation to make its EITC refundable (TCWF, MECEP).

Continue Reading »

Tags: , , ,
Kate Skochdopole Posted in Recent Updates, Weekly News Round-Up | Comments Off

All Eyes on Michigan as Record Number of States Advance Progressive EITC Legislation

July 13th, 2015

It’s been a busy legislative session for state Earned Income Tax Credits (EITCs). Unlike previous years when budget shortfalls forced legislators to target the EITC for reduction, this session an unprecedented number of states have improved existing credits and even enacted new ones.

Here’s a rundown: California became the 27th state (including the District of Columbia) to offer an EITC of its own. MassachusettsNew Jersey and Rhode Island passed legislation to increase their state EITCs to a higher percentage of the federal credit. And Maine just made its EITC refundable.

Continue Reading »

Tags:
Lauren Pescatore Posted in Recent Updates | Comments Off

Maine’s EITC Becomes Refundable

July 8th, 2015

By Lauren Pescatore

And then there were three.

Maine has officially become the 23rd state with a refundable Earned Income Tax Credit (EITC) – leaving behind DelawareOhio and Virginia as the only states that offer the credit with no refundable portion. Maine’s recent budget deal makes the state’s EITC fully refundable, increasing after-tax earnings for 100,000 working Mainers and their families.

Continue Reading »

Tags:
Kate Skochdopole Posted in Recent Updates | Comments Off

News Round-up: July 7, 2015

July 7th, 2015

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

  • Lawmakers in Oregon passed tax credit legislation that merged their Child Care Credit and Dependent Care Credit into the Working Family Child and Dependent Care Tax Credit. Democrats had hoped to expand the state’s EITC, but that measure was not included in the final legislation (Associated Press, Washington Times).

Continue Reading »

Tags: , , , , , ,
Kate Skochdopole Posted in Recent Updates, Weekly News Round-Up | Comments Off

Rhode Island EITC Increases to 12.5%

June 30th, 2015

By Lauren Pescatore

Moments ago, Rhode Island Gov. Gina Raimondo signed into law a budget that increases the state’s Earned Income Tax Credit (EITC) from 10 to 12.5 percent of the federal credit – a first step in restoring recent cuts made to the size of the state’s EITC.

Just last year, Rhode Island’s EITC was reduced from 25 to 10 percent of the federal credit, but made fully refundable. State advocates worked diligently throughout the year to engage Rhode Islanders and inform lawmakers on the importance of expanding the credit. Rhode Island’s larger EITC will help more than 80,000 workers in the state keep more of their earnings in order to support themselves and their families.

Rhode Island is now the third in a string of states to see positive EITC activity this session. Just last week, California became the 26th state to offer an EITC, while New Jersey increased its credit yesterday from 20 to 30 percent of the federal credit. We’re hopeful for a positive outcome in Michigan - the only state currently considering eliminating their existing credit.

Tags:
Kate Skochdopole Posted in Recent Updates | Comments Off

New Jersey’s EITC Increases to 30 Percent

June 29th, 2015

New Jersey Gov. Chris Christie (R) has taken a red pen to the state budget once again. Only this year, he did not line-item veto an increase for the Earned Income Tax Credit (EITC) and even went as far as to suggest an even larger credit as an alternative, a proposal that state lawmakers gladly accepted just moments ago.

After reviewing the $35.3 billion budget plan, which raised taxes on corporations and the wealthy to fund projects such as expanding the EITC from 20 to 25 percent of the federal credit, Christie announced that while he opposed raising taxes for the wealthy, he was in favor of lowering taxes for the state’s working poor. In a conditional veto of the “millionaire’s tax,” Gov. Christie proposed increasing the state’s EITC to 30 percent.

Continue Reading »

Tags:
Kate Skochdopole Posted in Recent Updates | Comments Off

« Older Entries |