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Tax Credits for Working Families

Tax Credits for Working Families

News Round-Up: April 21, 2014

April 21st, 2014

Here are some highlights from this past 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.

  • House Ways and Means Committee member Charles Rangel has introduced legislation to establish a new federal tax credit for renters, similar to a property tax circuit breaker.  (Center on Budget and Policy Priorities)

  • In honor of Tax Day, the Center on Budget and Policy Priorities (CBPP) released their top 11 federal tax charts, including graphs on how federal taxes push millions of workers into poverty, the Earned Income Tax Credit (EITC) benefits for workers who don’t have custody of children and Obama’s proposal to increase the federal EITC. CBPP also released their top six state tax charts, including a chart showing how many states’ poorest families pay the highest average tax rates and a chart showing states with EITCs. (CBPP 1,2)

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The Importance of Tax Policy in the Fight against Poverty

April 16th, 2014

This post was written by Ali Mickelson of the Colorado Fiscal Institute and first appeared as exclusive commentary for the Spotlight on Poverty and Opportunity blog. We are cross-posting with their permission.

Tax filing season can be a source of endless frustration as Americans struggle to complete their returns. But for millions of working families there is an important silver lining. Federal tax refunds, including through the Earned Income Tax Credit (EITC), provide needed assistance to low-income households. These tax credits are among our most important, and often underused, tools in the fight against poverty.

The effectiveness of these programs is remarkable. The EITC alone does more to reduce poverty than any other form of cash or near-cash assistance. And when the EITC is coupled with other anti-poverty tax code provisions, such as the Child Tax Credit (CTC), the benefit is even greater. Together, these two programs decreased the overall poverty rate by close to 3 percentage points and lowered the child poverty rate by more than 6 percentage points in 2011, according to research by the Brookings Institution. And the benefits last a lifetime. The children of these tax credit recipients perform better on standardized tests, have lower rates of teenage pregnancy and can expect higher future earnings.

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News Round-Up: April 15, 2014

April 15th, 2014

Here are some highlights from this past 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.

  • The Maryland legislature passed, and the governor is expected to sign, a bill to increase the refundable state Earned Income Tax Credit (EITC) from 25 to 28 percent of the federal credit over four years.  (HB198)

  • Missouri’s Senate Ways and Means Committee passed a bill to create a $400 per child tax credit for any parent filing taxes who makes less than $46,100 if filing individually or $92,200 if filing jointly with their spouse. The Missouri Budget Project spoke in favor of the bill before the committee. (Missouri Budget Project)

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News Round-Up: April 4, 2014

April 4th, 2014

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.

News Round-Up: March 28, 2014

March 28th, 2014

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.

News Round-Up: March 25, 2014

March 25th, 2014

Here are some highlights from the past 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.

  • Analysis from the Brookings Institution showed that under both the President’s proposal and proposals currently in Congress to expand the federal Earned Income Tax Credit (EITC) for workers without custodial children, millions of workers would receive a strengthened credit, at least 15 states would double the number of filers eligible for the childless worker credit and every major metro area would see thousands of workers benefit from an expanded EITC. (The Brookings Institution, The Washington PostTax Credits for Working Families)

Federal EITC Expansion Would Benefit Thousands of Workers in Every Major Metro Area

March 19th, 2014

By Lauren Pescatore

We blogged last week about how President Obama isn’t alone in wanting to expand the federal Earned Income Tax Credit (EITC). Representative O’Neal (D-MA), Representative Rangel (D-NY) and Senator Brown (D-OH) have also introduced separate bills to improve the federal credit.  Our legislative tracker allows you to compare their proposals.

Now, new data from the Brookings Institution’s MetroTax model shows that 14.1 million taxpayers would benefit from the President’s proposal, and 15.2 taxpayers from the Brown, Durbin and Neal proposal. Under either of these proposals, 61 percent of the workers who would benefit from the stronger EITC live in the nation’s 100 largest metro areas. Within these metro areas, the expansions would increase EITC benefits for nearly 4.7 million workers who are already eligible for the credit, while expanding eligibility to up to 4.6 million more workers.

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News Round-Up: March 14, 2014

March 14th, 2014

Here are some highlights from the past 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.

Expanding the Federal EITC: What is Being Proposed?

March 13th, 2014

By Debbie Stein

The President has proposed an expansion of the federal Earned Income Tax Credit (EITC) for workers without custodial children. There are also three bills pending in Congress with similar proposals.

We have just posted a chart that spells out exactly what is in each of these proposals.

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The Many Moving Parts of Camp’s Tax Reform for Low-Income Families

March 12th, 2014

This post was written by Elaine Maag, Senior Research Associate at the Tax Policy Center, and first appeared on their “TaxVox” blog. We are cross-posting with her permission.

House Ways & Means Committee Chair Dave Camp’s tax reform plan would make many changes to the two major refundable tax credits aimed at assisting low- and moderate-income working families—the earned income tax credit (EITC) and the Child Tax Credit (CTC).  It isn’t easy to keep track of all the moving parts, but it appears that Camp’s plan would benefit some married couples with young children at the expense of some childless workers, single parents, and families with older kids.

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