Tax Credits for Working Families

Infographic: Nearly 500,000 Military Families Could Face a Tax Increase in 2018

May 19th, 2015

This Memorial Day could be one of the last in which nearly half a million military families remain eligible for the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) at their current rate. Key provisions of both credits are scheduled to expire at the end of 2017, including a lower income threshold for collecting the CTC, “marriage-penalty” relief for EITC recipients and a larger EITC for families with more than two children. If Congress does not act to extend these improvements or make them permanent, some 450,000 families of veterans and active-duty service members with children could lose all or part of their EITC or CTC and see their taxes increase.

The EITC and CTC are vital policy tools for helping military families make ends meet. The Center on Budget and Policy Priorities reports that one in four – or about 1.4 million – veteran and armed-forces families benefit from working family tax credits. These families include about 3 million children and are widely represented across all 50 states.  The credits not only help these service members cover the cost of living and raising a family, they are also linked to healthier birthweights and higher educational attainment among the children of recipients.

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News Round-up: May 18, 2015

May 18th, 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.

  • Republican and Democratic legislators praised California Gov. Jerry Brown’s (D) revised budget proposal, which included the creation of a state Earned Income Tax Credit (EITC) to benefit over 825,000 low-income families (New York Times, Los Angeles Times, Sacramento Bee). The Public Policy Institute of California found that a state EITC could prevent working families from falling into poverty (Southern California Public Radio).
  • New York City Mayor Bill DeBlasio (D) unveiled his “Progressive Agenda,” a blueprint for reducing poverty by implementing policies like an expanded EITC and increased minimum wage (Bloomberg). Tax Justice Blog compared this plan, supported by Senators Elizabeth Warren (D-Mass.) and Jeff Merkley (D-Ore.), with New Jersey Gov. Chris Christie’s (R) new tax proposal. Christie’s plan would lower income and corporate tax rates (Tax Justice Blog, Forbes).

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News Round-up: May 11, 2015

May 11th, 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.

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This Mother’s Day, Protect the EITC and CTC for Working Moms

May 7th, 2015

By Kate Skochdopole

The Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) give working mothers the support they need to earn a living while raising a family.

 Twenty-one million low- to moderate-income mothers received either the EITC or low-income portion of the CTC in 2012. In addition to providing financial stability for millions of American families, tax credits like the CTC and EITC have been shown to increase feelings of self-esteem, citizenship and social inclusion. The credits are also linked to higher wage growth for women, and healthier birthweights among children of mothers who receive either the EITC or CTC.

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Michigan Voters Reject Sales Tax Increase, Expanded EITC

May 6th, 2015

By Lauren Pescatore

Yesterday, Michigan residents voted against a ballot proposal to increase the state’s sales tax in order to boost funding for schools, transportation and support for lower-income workers and their families. Proposal 1 would have raised the sales tax from 6 percent to 7 percent, raising nearly $1.3 billion to improve the quality of Michigan roads and hundreds of millions more in support for low-wage workers. The legislation more than tripled the size of the Michigan Earned Income Tax Credit (EITC), bringing it from 6 percent to 20 percent of the federal credit by 2016. The increase would have restored cuts to the credit made by lawmakers in 2011, reversing a nearly $247 million tax increase for working families

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News Round-up: May 4, 2015

May 4th, 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 Massachusetts House passed a fiscal 2016 state budget that does not include Governor Charlie Baker’s (R) proposal to expand the state’s Earned Income Tax Credit (EITC) (Nashoba Publishing, Lowell Sun). The Massachussetts Budget Center shared Kids Count data showing the credit’s town-by-town reach.

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Visualizing the Impact of State EITCs

April 29th, 2015

By Lauren Pescatore

The 2015 legislative session has been particularly active for state Earned Income Tax Credits (EITCs). Legislation was introduced in Arkansas to create a state EITC, but failed to pass a committee vote. A bill currently before California lawmakers would enact a refundable state credit. A measure to restore Michigan’s EITC to previous levels is pending approval from voters in a May special election. EITC legislation was also introduced in Illinois, Massachusetts, Mississippi, Montana, Nebraska and North Carolina this session.

Because each state’s EITC is structured differently, it can be difficult to visualize how various changes to these credits affect the lives of working families. Throughout the session, Tax Credits for Working Families has worked with a number of state policy groups to help illustrate the impact of legislative decisions around the EITC through infographics and social media memes:

Tax credits Illinois infographic april 23         MT_infographic_final

Infographics are vital tools for breaking down complex issues and helping to educate lawmakers and the public about how policy decisions can affect individuals and their families. If you feel that your organization could benefit from an EITC infographic, please contact Lauren Pescatore at lpescatore@thehatchergroup.com.

You can find all TCWF and other tax-credit related infographics from our partner organizations here.

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Tax Credits for Working Families, Not Tax Breaks for Wealthy Estates

April 28th, 2015

This post was written by Melissa Boteach of the Center for American Progress and originally appeared on Spotlight on Poverty and Opportunity’s website here. We are cross-posting with her permission.

This tax day, House Republicans are proposing to repeal the estate tax, giving massive tax breaks to some of our nation’s wealthiest families. This windfall to millionaires and billionaires would balloon deficits to give some of the richest households a giveaway they don’t need. 

As we mark tax day, we should recognize that the top 0.2 percent of wealthy estates don’t need a tax break. Rather, it’s the millions of hardworking Americans struggling to make ends meet—Americans who could see their taxes go up and their families fall into poverty if Congress fails to preserve and strengthen tax credits for working families.  

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News Round-up: April 27, 2015

April 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.

  • House Republicans released a measure to expand the Trade Adjustment Assistance program, which would be funded in part by reducing the number of taxpayers eligible for the Child Tax Credit (CTC) (The Hill 1, 2).
  • The Washington Post editorial board argued that the tax code’s current structure is enabling income inequality, noting that the Earned Income Tax Credit (EITC) and CTC are the only two out of the ten largest tax expenditures that favor the less wealthy (Washington Post).

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News Round-up: April 20, 2015

April 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.

  • In Maine, Gov. Paul LePage (R) and legislative leaders continue to battle over tax reform. LePage wants to eliminate the state’s income tax, thereby eliminating the state’s Earned Income Tax Credit (EITC). Many legislators hope to instead reduce property taxes, which disproportionately affect low- and middle-income families (Tax Justice Blog).
  • Colorado Gov. John Hickenlooper (D) proposed a tax plan that would fully fund the state’s EITC. The credit has been suspended for several years pending state revenues reaching certain levels (Colorado Springs Gazette).

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