Tax Credits for Working Families

Rubio White House Run Brings Tax Reform Center Stage

April 13th, 2015

By Kate Skochdopole

Sen. Mark Rubio (R-Fl.) made clear his bid for the White House today, and is considered to be one of the strongest GOP presidential candidates for 2016. Like his colleague Sen. Rand Paul (R-Ky.), who announced his candidacy last week, Sen. Rubio has a historically rocky relationship with tax credits for working families.

During his time in the Senate, Rubio has sponsored several bills to reform the tax code. These plans have left tax advocates split on whether Rubio’s intent is to improve the structure of the safety net or radically diminish it. His most recent plan, “The Economic Growth and Family Fairness Tax Credit” co-sponsored by Senator Mike Lee (R-Utah), would create a second flat-rate Child Tax Credit (CTC) and collapse the eight tax brackets into two. Rubio and Lee are tightlipped on how their plan could affect the future of existing tax credits, but it is clear that this plan would allow vital provisions of the CTC and Earned Income Tax Credit (EITC) to expire beginning in 2018, pushing millions of working-poor families deeper into poverty.

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News Round-Up: April 13, 2015

April 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.

  • With Sen. Rand Paul’s (R-Ky.) announcement that he would run for President, many voiced concern about how his budget-cut heavy tax plans and previous proposals to cut tax credits like the Earned Income Tax Credit (EITC) would affect working families. (Vox, Tax Credits for Working Families).
  • We wrote about how the Child and Dependent Care Credit helps one working mother balance her career and family life, and how she and nearly 80,000 others could benefit from the enactment of a California EITC. (Tax Credits for Working Families).

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A Paul Presidency Could Mean Trouble for Tax Credits

April 7th, 2015

Senator Rand Paul (R-Ky.) officially joined the ranks of 2016 presidential hopefuls when he announced his candidacy this morning. Unlike the other candidates, he comes to race with an extensive and well-documented policy record, including his own fully-loaded federal budgets.

Paul’s tax reform proposals from earlier years spell disaster for many safety net programs. His 2012 budget stripped the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) of refundability. The Senator’s 2013 budget went even further, providing a sample tax return form that notably excluded any non-mortgage interest tax credits or deductions – including the EITC and CTC. 

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For This Working Mother, the Child Care Credit Makes All the Difference

April 7th, 2015

By Lauren Pescatorechristiectc

Christie Porter is a working mother of two young boys living in California, a state that ranks sixth highest in the nation for cost of living but offers a minimum wage of only $9.00 per hour. Christie works full time at a manufacturing company and her husband is employed full time as a service worker for their city’s water department.

With both parents working 40-plus hours per week, Christie’s two sons require all-day child care. But neither parent’s job pays enough to cover the high cost of full-time daycare. To make matters worse, as Christie’s income has increased over the past few years, so have her taxes. This puts Christie in a nearly impossible situation. “I want to work full time,” Christie says. “I want my husband to be able to work full time. But how are we supposed to do that if we aren’t being paid enough to afford full time child care?”

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News Round-Up: April 6, 2015

April 6th, 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 tax plan recently introduced by Senators Marco Rubio (R-Fl.) and Mike Lee (R-Utah) continues to be a topic of national discussion. Marketwatch’s Dina Furchtgott-Roth supported the plan but encouraged the senators to add a third tax bracket to help low-income families (Marketwatch). Amity Shlaes and Matthew Denhart of the Wall Street Journal examined how the plan could shape presidential platforms in 2016 (Wall Street Journal).
  • The Minnesota State Senate Tax Committee held a hearing on two bills to expand Minnesota’s Child and Dependent Care Credit (DL-Online). Legislators are considering combining proposals into an omnibus tax reform bill (JD Supra).

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In Oregon, an Unlikely Leader in EITC Advocacy

April 3rd, 2015

By: Lauren Pescatore

The business community has historically supported the Earned Income Tax Credit (EITC). The U.S. Chamber of Commerce is an active member of theNational EITC Outreach Partnership and hosts a Workforce Development Leadership Course to educate local businesses and chambers about the benefits of the credit. Notably, chambers in Maryland, D.C. and Louisville, Kentucky backed EITC legislation in recent sessions. As a whole, however, the business community hasn’t been particularly vocal in its support for the credit at the policy level.

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News Round-Up: March 30, 2015

March 30th, 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.

News Round-Up: March 24, 2015

March 24th, 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.

  • According to the Center on Budget and Policy Priorities, safety net programs like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) lifted 39 million Americans out of poverty in 2013 (Off the Charts).
  • New data showed that 55 percent of EITC recipients paid for tax preparation last year instead of having their taxes prepared for free at Volunteer Income Tax Assistance (VITA) sites (ABC News).

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State EITC Campaigns Off to a Promising Start

March 20th, 2015

By Kate Skochdopole

As the debate around income inequality heats up at the federal level, state legislative sessions are in full swing – and packed full of proposals aimed at tackling the wealth gap.  We’ve got our eye on a number of states looking to expand their existing Earned Income Tax Credits (EITCs) or enact new ones to help working families keep more of the money they’ve earned: 

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News Round-Up: March 16, 2015

March 16th, 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.

  • Shikha Dalmia wrote about Sen. Marco Rubio’s (R-Fla.) and Sen. Mike Lee’s (R-Utah) new tax plan, arguing that it would benefit high-income families and corporations more than middle- and low-class families (The Week). In response, Ramesh Ponnuru stood by his previous assessment of the bill, claiming that the legislation would be good for all taxpayers (National Review).
  • The Corporation for Enterprise Development (CFED) released a new breakdown of IRS data on tax returns prepared at Volunteer Income Tax Assistance (VITA) sites. The data showed volunteer tax preparers helped return nearly $4 billion to low-income taxpayers across the nation, more than one billion of which was in the form of an Earned Income Tax Credit (EITC)  (Columbus Dispatch, Reno News Gazette, The Day).

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