Tax Credits for Working Families

Archive for the ‘Weekly News Round-Up’ Category

News Round-Up: July 21, 2014

July 21st, 2014

Here are some highlights from last 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.

  • A bill from Rep. Cory Gardner (R-Colo.), H.R. 5070, seeks to eliminate improper Earned Income Tax Credit (EITC) payments by increasing penalties and expanding IRS authority, and use the savings to expand the credit. The bill would authorize a study to improve the efficiency and effectiveness of the EITC while reducing improper payments. (KRAI-FM, Rep. Gardner)

News Round-Up: July 14, 2014

July 14th, 2014

Here are some highlights from last 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.

  • Senators Kirsten Gillibrand (D-N.Y.), Patty Murray (D-Wash.), Jeanne Shaheen (D-N.H.) and Barbara Boxer (D-Calif.) introduced a bill that would more than double the maximum federal Child and Dependent Care Credit to up to $8,000 for one child and $16,000 for two or more children. The bill would also make the credit refundable, making it far more valuable to people with very low incomes. (The Huffington Post, Office of Rep. Shaheen)

  • Brookings fellow Richard V. Reeves noted that the United Kingdom’s “Universal Credit” has sparked significant interest among lawmakers in the U.S., but argued that such a credit is unnecessary here, thanks to the relative generosity of our existing work supports like the Earned Income Tax Credit (EITC). (The Brookings Institution)

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News Round-Up: July 7, 2014

July 7th, 2014

Here are some highlights from last 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: June 27, 2014

June 27th, 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.

News Round-Up: June 20, 2014

June 20th, 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 Rhode Island General Assembly passed the state budget for 2015, which eliminated the state property tax circuit breaker for anyone who is not elderly or disabled in the coming year, and in the following year will reduce the state’s EITC from 25 to 10 percent of the federal credit but make it fully refundable. (Reuters, Economic Progress Institute 1, 2, 3)

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News Round-Up: June 13, 2014

June 13th, 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.

News Round-Up: June 6, 2014

June 6th, 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.

  • Iowa Gov. Branstad signed into law Senate File 2337 to improve the state’s Child and Dependent Care Credit by allowing taxpayers to claim the full amount of the state credit without regard to whether the federal credit was capped because it exceeded the taxpayer’s federal tax liability. This does not appear, however, to make the state credit refundable. (The River Cities Reader)

  • A compromise budget bill agreed upon by Ohio‘s General Assembly that doubles the state’s nonrefundable Earned Income Tax Credit (EITC) from 5 to 10 percent of the federal credit is awaiting signature by the governor. Policy Matters Ohio acknowledged the benefits of increasing the EITC, but argued that the credit still needs to be made refundable, and that most of the other tax cuts included in the budget bill are wrongly aimed toward the state’s wealthier residents. (The Toledo Blade, Policy Matters Ohio)

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News Round-Up: June 2, 2014

June 2nd, 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 Illinois Senate gave final approval to the state’s $35.7 billion fiscal 2015 budget on Friday, without including the governor’s proposed increase to the state Earned Income Tax Credit (EITC). The legislature is likely to revisit the budget after the November elections, and advocates hope to secure the EITC increase then. (5NBC Chicago, Bloomberg )
  • Washington, D.C. Council Chairman Phil Mendelson released a budget plan that would expand the district’s EITC for childless workers and increase the standard deduction for single and married residents to match federal levels. On May 28th, the Council passed this proposal but a second vote, expected June 11, is needed to enact it. (The Washington Post, DC Fiscal Policy Institute)

  • New analysis from Policy Matters Ohio finds that while the state budget bill most recently approved by the Senate includes an increased EITC, most of the tax cuts in the bill are aimed at Ohio’s wealthier residents and don’t help the state’s struggling lower-income families. (The Columbus Dispatch, The Toledo Blade, Policy Matters)

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News Round-Up: May 27, 2014

May 27th, 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.

  • A final version of the Illinois House’s 2015 fiscal year budget could include an increase to the state’s EITC, a proposal that boasts bipartisan support in the state. Illinois advocates have created a website that allows people to enter their address and see how the EITC benefits their community.   (The Examiner, Northern Public Radio)

  • Nearly $400 million in property tax refunds for low-income New Jersey residents from programs such as the state’s property tax circuit breaker, called the Homestead Rebate, will be delayed to low-income residents for another nine months to help balance the state’s budget. (The Asbury Park Press)

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News Round-Up: May 16, 2014

May 16th, 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.

  • According to a Treasury Inspector General report, improper Earned Income Tax Credit (EITC) payments increased last year, and the IRS pointed out that several proposals in front of Congress, including one to give the agency to correct certain filing errors, would help reduce the level of improper payments. (The Washington Post)

  • The Institute on Taxation and Economic Policy released a report showing how state EITCs can improve the fairness of state tax codes and recommending several possible reforms. The report includes a state by state analysis of the impact of each proposal. (ITEP)

  • A recent report analyzing recipient perceptions of the EITC shows that few realize how much of their tax refund is due to it, only a minority realize they get it because they have children, and most didn’t realize that if their income was in the phase-out range their credit would decrease as they earned more. This may help explain why the credit encourages people to work more but doesn’t appear to encourage them to work less if they earn in the phase-out range—a concern sometimes raised by conservatives. The National Review suggests this provides tentative support for Marco Rubio’s framework for replacing it with a direct wage subsidy, according to National Review’s Justus Myers. (National Review)

  • The conference report for Minnesota’s House File 3167 includes a one-time six percent increase in the Property Tax Refund for Renters, or Renters’ Credit, and a three percent increase in the Property Tax Refund for homeowners. The bill is expected to be formally approved next week. (Minnesota Budget Bites)

  • A recent report from Connecticut Voices for Children finds that more than half of states with an income tax offset the cost of raising children through some type of child tax credit, while Connecticut does not. Connecticut Voices recommends that state policymakers adopt family-friendly tax measures used in other states, such as a Child Tax Credit or Child and Dependent Care Credit. (Connecticut Voices for Children)

  • Illinois group EITC Works is advocating for lawmakers to increase the state’s EITC from 10 percent to 20 percent of the federal credit. As part of their effort they launched www.EITCWorks.org, showing the value of the current and proposed EITC in every legislative district. (WICS NewsChannel 20)

  • The League of Women Voters of Charlotte-Mecklenburg wrote to the Charlotte Observer in favor of reinstating North Carolina‘s refundable EITC and raising the state’s percentage of the federal credit back to five percent. (The Charlotte Observer)

  • Chris Kerrigan, president and CEO of Trident United Way, wrote to the Post and Courier in South Carolina in favor of increasing the federal EITC in order to help low-income working families make ends meet. (The Post and Courier)

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