California lawmakers last year established a state Earned Income Tax Credit (EITC) modeled on the federal credit of the same name. This Data Hit from the Budget Center shows how the state and federal EITCs together benefit working families and also points out how the new state EITC is just one step toward fostering economic security in our state.
Search Results for: EITC
As part of a broader effort to promote the new California EITC, and in turn boost uptake of the state and federal EITCs, state officials designated January 22, 2016 as California EITC Awareness Day. This day focused on lifting up the Earned Income Tax Credit and was a great chance for those interested in fostering economic security to get involved.
Today marks the official launch of a statewide campaign, CalEITC4me, to spread awareness of California’s first-ever state Earned Income Tax Credit (EITC), which will help workers who face economic hardship to better meet their basic needs. The campaign was initiated by Golden State Opportunity, a new foundation created by California entrepreneur Joe Sanberg, and is led by a public-private partnership that includes state agencies, business leaders, and a diverse range of local and statewide community organizations. » Read more about: California EITC Awareness Campaign Launches Today »
Senior Policy Analyst Alissa Anderson spoke at the Bay Area State EITC Stakeholders Summit to discuss California’s new Earned Income Tax Credit and innovative ways to raise awareness and increase uptake.
The Budget Center launched a new interactive tool on our website today that shows how much working Californians will benefit from the state’s new Earned Income Tax Credit (EITC), which was established by lawmakers this past June and is modeled on the federal credit of the same name. This new tool will help policymakers and advocates, as well as workers themselves, to better understand how the state credit works. Specifically, this interactive tool estimates how much low-income families and individuals can expect to receive from both the state and federal EITCs based on their tax filing status, » Read more about: New Interactive Tool Shows How Much Californians Will Benefit From the State EITC »
Previous research has significantly understated the number of families lifted out of poverty by the federal Earned Income Tax Credit (EITC), according to a new study by UC Berkeley professor Hilary Hoynes and her colleague Anker Patel. Using a more comprehensive analysis than past studies, Hoynes and Patel find that the credit cuts poverty nearly twice as much as previously thought.
The federal EITC can reduce poverty in two ways: by directly boosting incomes through the credit itself and by indirectly raising incomes by encouraging people to work and therefore earn more. » Read more about: The Federal EITC Cuts Poverty Nearly Twice as Much as Previously Thought »
California appears to be on track to becoming the 26th state in the nation with a state Earned Income Tax Credit (EITC). A robust outreach effort will be critical to the state EITC’s success because the credit targets workers whose earnings are so low that they probably don’t have to file state taxes and may not be familiar with how filing works.
But it’s not only workers with very low earnings who stand to benefit from efforts to promote the new state credit. » Read more about: Promoting a State EITC Could Draw Millions of Federal Dollars Into California Communities »
An analysis released yesterday by the Public Policy Institute of California (PPIC) confirms that a state Earned Income Tax Credit (EITC) would reduce economic hardship in California and lift thousands of Californians out of poverty. According to PPIC’s estimates, the Governor’s proposed state EITC would lift 70,000 Californians, including 31,000 children, out of poverty. Importantly, PPIC also estimates that 1.28 million Californians would experience less severe poverty because of this new state EITC, » Read more about: A State EITC Would Lift Thousands of Californians Out of Poverty »
Today the budget Conference Committee approved the Governor’s proposed state Earned Income Tax Credit (EITC). This credit would boost the incomes of workers with very low earnings, as we discuss here, and as a result, it would inject additional dollars into local economies, particularly where poverty rates are high, as we point out here. One question that has come up in recent deliberations is what type of workers earn so little as to qualify for the proposed state EITC, » Read more about: State EITC Would Benefit Low-Paid Workers Who Can’t Work Full-Time »
The Governor’s proposed state Earned Income Tax Credit (EITC) would boost the incomes of hundreds of thousands of low-income families across California. Eligibility for the state EITC would be restricted just to households with very low incomes, but they would receive a larger credit than what is typically offered by other states with state EITCs. As we explained last week, this design would substantially increase incomes for California’s lowest-earning workers and their families. » Read more about: A State EITC Would Help California Counties Coping With High Poverty Rates »