Posts Tagged ‘Illinois’
Weekly Round-Up: February 1, 2013
February 1st, 2013
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.
- A Kentucky Earned Income Tax Credit (EITC) set at 15 percent of the federal credit could be part of an overall tax reform package considered during a special session that may convene this year, according to a recent statement by Lt. Gov. Jerry Abramson. A 15 percent state EITC was recommended by the Governor’s Blue Ribbon Commission on Tax Reform in December 2012. “We have presented it to the governor and we are hopeful that over the next year there will be some movement where the legislature will support some type of state tax credit that would match with the federal earned income tax credit,” Abramson said. (The Courier-Journal)
- New Jersey Gov. Chris Christie conditionally vetoed a bill Monday to increase the state’s minimum wage by $1.25 an hour, countering with a scaled-back plan to implement a smaller increase while providing direct relief to struggling working families through an increase to the state’s EITC from 20 percent to 25 percent of the federal credit. “To make certain that New Jersey’s working families are on the strongest economic footing possible to continue their economic progress, today I am also proposing that the benefit amounts provided under the New Jersey Earned Income Tax Credit program be increased by 25 percent,” said Governor Christie. “My plan will give workers the additional income and relief that will spur consumer spending and help grow strong, sound families.” (In 2010, his first year in office, Christie proposed, and the legislature approved, a reduction of the EITC from 25 to 20 percent. Christie has since used the EITC as a bargaining chip for his tax cut plan, line-item vetoing legislation in 2011 and 2012 that would have restored the EITC.) A two-thirds majority in both houses is needed to override the veto, but reports suggest that the Democratic legislature wouldn’t act on the bill and instead would go another route: pass a bill that would put the minimum wage issue to voters in November. (Examiner.com, Asbury Park Press, Washington Times, Huffington Post)
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Weekly News Round-Up: June 29, 2012
June 29th, 2012
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.
- The New Jersey state Assembly adopted a bill to increase the Earned Income Tax Credit (EITC) from 20 percent to 25 percent of the federal credit Monday after a 48-31 vote. The state Senate has not yet voted on the bill. If the bill passes, the average tax credit will jump from $430 to $545 per year for more than 500,000 New Jersey taxpayers. The state credit was 25 percent before it was cut two years ago. (Fox NY)
- Illinois Gov. Pat Quinn’s administration announced that because the budget did not include funding for the state Circuit Breaker program for FY 2013, beginning July 1, the state Circuit Breaker property tax program would not be available to as many as 120,000 low-income seniors. Illinois created the Circuit Breaker program in 1972 to help senior citizens and people with disabilities if their rent or property tax bills were too large a share of their income. (Note: the law remains on the books should funding become available in future years.) (Sun Times, KFVS 12)
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Weekly News Round-Up: April 13, 2012
April 13th, 2012
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.
- “The era of the tax advance is over,” The Washington Post declared this week. Refund anticipation loans have long preyed on low-income filers, often those claiming the Earned Income Tax Credit, by offering them an advance on their refund, coupled with punishing interest. Only one bank is still providing the loans, and will stop after this tax season. (Washington Post)
- Tax day is only a few days away – check out a few articles on the importance of filing for the Earned Income Tax Credit, Child Tax Credit and Additional Child Tax Credit, and Child and Dependent Care Tax Credit. (CNN, Detroit Free Press, EGP News)
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2012 State Legislative Preview
March 1st, 2012
In 2012, nearly half the states are considering changes to at least one of these four tax credits for working families.
Threats: Most worrisome are the proposals in Kansas and Oklahoma. In Kansas, Governor Sam Brownback proposed eliminating the EITC and child and dependent care credit as part of a major tax system revision to reduce the income tax and cut taxes for businesses. However, rather than eliminating the EITC entirely, the House Tax Committee passed a bill that would cut the EITC in half and make it non-refundable. Oklahoma is also facing a serious effort to eliminate the EITC, child tax credit, child and dependent care credit, and property tax circuit breaker, as Governor Mary Fallin and the legislature consider a number of different proposals to reduce or eliminate the state income tax system in favor of a sales tax system.
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2011 State Legislative Review
March 1st, 2012
Last year, we saw major developments unfold on tax credits for working families in a number of states. In some states, governors and legislators reduced these credits to help offset the cost of tax cuts, particularly for businesses, and help balance their budgets. In others, policymakers created or improved family tax credits to help protect low- and moderate-income families from tax increases, as part of a package of broader tax reform to raise revenues.
Losses: In Michigan, in order to help offset new business tax cuts and balance the budget, the EITC was scaled back from 20 percent to 6 percent of the federal credit, and the state’s property tax circuit breaker credit was reduced or completely eliminated for many low- and middle-income homeowners and renters. The final outcome was a significant improvement over the initial proposals, which would have completely eliminated both credits.
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Weekly News Round-Up: February 10, 2012
February 10th, 2012
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.
- Debate continues over a Congressional Republican proposal to require those claiming the Additional Child Tax Credit to provide their Social Security number. Hispanic leaders and some Democratic lawmakers are leading the charge against the proposal, which is being offered as a way to fund part of the payroll tax cut extension. Senate Majority Leader Harry Reid says the proposal unfairly goes after the children of poor Hispanic workers. Such children often are U.S. citizens, even when their parents aren’t. (Huffington Post, Fox News, New York Times, Philadelphia Inquirer, Poverty & Policy, Wisconsin Council on Children and Families
- Hearings on Kansas Gov. Sam Brownback’s budget proposal began on Wednesday. The governor’s proposal has faced criticism for the impact it would have on the poor, but Revenue Secretary Nick Jordan indicated the administration is flexible on one key point of contention: the elimination of the Earned Income Tax Credit. “We’re very flexible on this part,” he said. “We just want to talk.” (Wichita Eagle, Lawrence Journal World)
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Weekly News Round-Up: February 3, 2012
February 3rd, 2012
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.
- In his State of the State address on Wednesday, Illinois Gov. Pat Quinn proposed a state Child Tax Credit worth $100 a year for a “typical family of four.” Details on the cost to the state and the terms are not immediately available, but Quinn said the relief would stimulate demand and help parents. Family tax credits have been getting a lot of attention in Illinois recently – in December the state doubled its Earned Income Tax Credit. (Chicago Business)
- In an interview with CNN on Wednesday, GOP presidential hopeful Mitt Romney said, “I’m not concerned about the very poor. We have a safety net there. If it needs repair, I’ll fix it.” But Romney has already advocated slashing the social safety net, from cutting Medicare to ending the expansions of the Earned Income Tax Credit and Child Tax Credit. (The Nation)
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Illinois Doubles its State EITC
December 15th, 2011
This week the Illinois legislature passed a bill to increase its Earned Income Tax Credit, doubling the size of the credit to 10 percent of the federal EITC, phased in over three years. The bill cleared its final legislative hurdle Tuesday when the Senate passed it in a special session, after the House passed the bill on Monday. Governor Pat Quinn is expected to sign the bill, which is paired with a bill to cut taxes for corporations and smaller businesses.
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State of the State Budget: A Legislative Update on Family Tax Credits
July 7th, 2011
Recently, there have been a number of noteworthy developments on tax credits for working families. Some states are still considering cuts to these credits, while others may seize a last minute opportunity to expand on these credits as they work to finalize a deal on the budget.
Losses: Just last week, at the request of Connecticut Governor Dannel Malloy, state legislators reduced the new state Earned Income Tax Credit (EITC) from 30 to 25 percent of the federal credit retroactive to January 1, 2011. The governor made this proposal after unionized state employees failed to ratify a $1.6 billion concession deal. But while the timing of the proposed cut may give the appearance that this reduction is necessary to help balance the next state budget, the EITC cut will go into effect even if the governor and the unions are able to reach an agreement on concessions that eliminate or reduce the need for budget cuts.
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Property tax circuit breaker developments
May 20th, 2011
This past week the focus shifted from the EITC (in Michigan and Connecticut) to property tax circuit breakers (in Missouri, Minnesota, Michigan, Wisconsin and Illinois.)
First, the good news. In Missouri, the property tax circuit breaker credit for renters survived, despite the legislature passing a budget that assumed it would be eliminated. But the legislature never passed a bill that would in fact eliminate it, and in the final days of the legislature, they cobbled together a budget agreement with the governor that left the circuit breaker intact and balanced the budget by making other cuts. Since they did not address any of the structural deficit issues, Missouri will almost certainly face a budget gap next year, and the renter’s credit may be under attack again.
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