Tax Credits for Working Families

News Round-up: August 15, 2016

August 18th, 2016

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

  • Donald Trump and Hillary Clinton gave economic speeches last week and laid out their visions to reform the tax code, make child care affordable and boost local economies (CBS News, New Yorker, Marketwatch, PBS Newshour). On child care affordability, Trump said he would make all child care spending tax deductible, but advocates argue that the deduction will help upper- and middle-income families while doing little for low-income workers. Clinton’s plan would use subsidized care and tax credits to reduce the cost of child care for working families (AEI, Washington Post, Portland Press Herald, Newsweek).

Continue Reading »

Tags:
Kate Skochdopole Posted in Recent Updates | Comments Off on News Round-up: August 15, 2016

To Clinton and Trump: Don’t Overlook the EITC

August 12th, 2016

By Kate Skochdopole

This week, presidential candidates Hillary Clinton and Donald Trump gave economic policy speeches. Both laid out plans for how to grow and support the middle class. Both mentioned how they would use the tax code to achieve this goal. Both emphasized the need to encourage work and strengthen local economies. But neither talked about the Earned Income Tax Credit (EITC), a policy tool that checks all of these boxes.

That’s a missed opportunity.

Continue Reading »

Kate Skochdopole Posted in Recent Updates | Comments Off on To Clinton and Trump: Don’t Overlook the EITC

News Round-up: August 8, 2016

August 8th, 2016

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

  • A new report from the Center for American Progress found that expanding the Earned Income Tax Credit (EITC) to childless workers not only would help communities economically, but also would lower the crime rate and increase public safety. According to CAP’s research, these changes to the EITC would save taxpayers $3.3 billion per year through reduced property damage, lower medical expenses and fewer deaths (CAP).
  • We interviewed Sen. Angus King (I-Maine) about his bill to expand the Child and Dependent Tax Care Credit (CDCTC) (TCWF).

Continue Reading »

Tags: ,
Kate Skochdopole Posted in Recent Updates, Weekly News Round-Up | Comments Off on News Round-up: August 8, 2016

Sen. King: Make Childcare More Affordable by Increasing the CDCTC’s Reach

August 4th, 2016

By Tyler Bishop

For families struggling to make ends meet, the rising costs of childcare can be crippling. That’s why Sen. Angus King (I-Maine) says he partnered with Sen. Richard Burr (R-N.C.) to introduce the Promoting Affordable Childcare for Everyone (PACE) Act. The bill, which was announced in July, would alter two major existing tax benefits—the Child and Dependent Care Tax Credit (CDCTC) and Dependent Care Flexible Spending Accounts (FSAs)—in an effort to make them more valuable for working families.

The CDCTC is currently non-refundable. That means many parents who don’t earn enough to have taxable income are left out of the credit even though they face mounting childcare costs. The credit also loses value over time because it is not indexed to inflation. In other words, as the cost of childcare goes up—and the real value of the dollar goes down—the CDCTC does not keep pace.

Continue Reading »

Kate Skochdopole Posted in Uncategorized | Comments Off on Sen. King: Make Childcare More Affordable by Increasing the CDCTC’s Reach

News Round-up: August 1, 2016

August 1st, 2016

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

  • The Democratic Party released its policy platform, which included a call to expand the EITC for workers not raising children and lower the eligibility age from 25 to 21 (Vox, Tax Justice Blog).
  • After weeks of debate, Massachusetts Charlie Baker (R) vetoed a bill that would have increased the state’s Earned Income Tax Credit (EITC) from 25 to 28 percent of the federal credit by levying a tax on Airbnb rentals in the state. Baker said that he believes the EITC is “an effective tool for supporting Massachusetts’ hardworking families and individuals” and hopes he can work with the legislature to expand the credit in the future (Boston Globe, Lowell Sun).

Continue Reading »

Kate Skochdopole Posted in Recent Updates, Weekly News Round-Up | Comments Off on News Round-up: August 1, 2016

IRS Has Room to Improve, But Remains Best Choice for Administering EITC

July 29th, 2016

By Tyler Bishop

Despite nearly 18 percent in funding cuts since 2010, the IRS remains the most suitable agency to deliver social benefits such as the Earned Income Tax Credit (EITC,) according to a new report.

The Role of the IRS as a Social Benefit Administrator,” authored by tax policy expert Steve Holt, looks at the challenges the IRS faces in administering programs like the EITC. Holt contends that the agency currently is wrestling with what he called an “identity crisis,” noting that it needs to handle the hybrid of tax and social policy that comprise the credit while also fulfilling its role as the nation’s tax collector.

Continue Reading »

Kate Skochdopole Posted in Recent Updates | Comments Off on IRS Has Room to Improve, But Remains Best Choice for Administering EITC

News Round-up: July 25, 2016

July 25th, 2016

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

  • The Trump campaign announced it will rework the candidate’s tax reform platform, which will be released in the coming weeks. It is unclear whether or not the plan will include measures to support tax credits for working families (Washington Post).
  • Mark DeSaulnier (D-Cali.) introduced HR 5764, a bill that would exclude Pell Grants from taxable income, a move that would allow more low-income students pursuing higher education to become eligible for tax credits like the Earned Income Tax Credit (EITC) (CLASP).

Continue Reading »

Tags: , ,
Kate Skochdopole Posted in Recent Updates, Weekly News Round-Up | Comments Off on News Round-up: July 25, 2016

News Round-up: July 18, 2016

July 18th, 2016

Here are some highlights from the past week’s news and upcoming events on family tax credit issues. 

A number of proposals affecting federal tax credits for working families were unveiled last week:

  • Rep. Jim Renacci (R-Ohio) unveiled a tax reform plan that would replace the corporate income tax with a consumption tax. The proposal would eliminate most personal tax credits but would keep the Child Tax Credit as is and expand the EITC. (The Hill)

Continue Reading »

Lauren Pescatore Posted in Recent Updates, Weekly News Round-Up | Comments Off on News Round-up: July 18, 2016

VITA is Vital for Low-Wage Workers. Here’s How We Can Make It Even Better.

July 15th, 2016

By Kate Skochdopole

A recent policy brief from the Corporation for Enterprise Development (CFED) explores the importance of Volunteer Income Tax Assistance (VITA) in helping families reach financial stability and lays out policy options for strengthening the program.

VITA sites offer free tax preparation services for lower-income workers and are staffed by IRS-certified volunteers from the surrounding community. The sites help to raise awareness of tax benefits for low-income filers such as the Earned Income Tax Credit and Child Tax Credit and equip filers with the tools and advice they need to move towards financial stability. VITA programs boast a 94 percent accuracy rate, substantially higher than that of some paid tax preparers.

Continue Reading »

Kate Skochdopole Posted in Recent Updates | Comments Off on VITA is Vital for Low-Wage Workers. Here’s How We Can Make It Even Better.

News Round-up: July 11, 2016

July 11th, 2016

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

  • Barbara Gault, executive director of the Institute for Women’s Policy Research, said that expanding access to the Earned Income Tax Credit (EITC) and other public benefits for low-wage workers could help make higher education more attainable for young people in low-income families (Chronicle of Higher Education).
  • Lawmakers in New Jersey are still debating how to fund the state’s transportation projects. One of the proposed fixes would raise the gas tax and increase the state’s EITC from 30 to 40 percent of the federal credit (Washington Post).

Continue Reading »

Kate Skochdopole Posted in Recent Updates, Weekly News Round-Up | Comments Off on News Round-up: July 11, 2016

« Older Entries |