California is poised to become the 26th state in the nation with a state Earned Income Tax Credit (EITC), which is a proven strategy for reducing economic hardship among working families and individuals, as we’ve discussed in various publications and blog posts. Establishing California’s first-ever refundable EITC would be a significant advancement for our state at a time when many workers live in poverty. To help inform the debate over establishing a state EITC as policymakers finalize California’s 2015-16 budget, » Read more about: Proposed State EITC Would Significantly Boost the Incomes of California’s Lowest-Earning Workers »
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As part of the Bay Area Asset Funders Network’s forum, Budget Center’s Executive Director Chris Hoene spoke on Earned Income Tax Credit (EITC) at the State and Federal Level.
In last week’s May Revision to his 2015-16 state budget, Governor Jerry Brown called for California’s first-ever state Earned Income Tax Credit (EITC). The proposed $380 million state credit would be an “add-on” to the successful federal EITC, providing a refundable tax credit to Californians with incomes of less than $6,580 (for those with no dependents) ranging up to $13,870 (for those with three or more dependents). The average household credit would be $460, » Read more about: Creating a State Earned Income Tax Credit (EITC): Key Budget Center Resources on the Issue »
“By calling for California’s first-ever state Earned Income Tax Credit, the Governor’s revised budget takes an important first step toward reducing economic hardship and expanding opportunity. A state EITC that builds on the federal credit will help working Californians to afford groceries, rent, and other day-to-day necessities while moving toward financial security.”
It’s well established that the “official” federal poverty line falls far below the level of income Californians actually need to be economically secure in our high-cost state. Our research finds, for example, that a single parent with two children needs to earn almost $75,000 annually — around four times the poverty line — just to afford the basics, including housing, food, and child care. The typical single mother, however, earns only about one-third of this amount — around $26,000 per year. » Read more about: A State EITC Would Complement Other Public Supports That Boost Families’ Economic Security »
Yesterday was “Tax Day” — a day that millions of low- and moderate-income Californians look forward to because it means they’ll receive sizeable tax refunds thanks to the federal Earned Income Tax Credit (EITC), a refundable personal income tax credit that helps foster economic security among working families and individuals. Low-income families with two children can receive as much as $5,460 from the credit, a significant sum that can help families pay their bills, reduce their debt, » Read more about: Your Resources for Understanding the Debate Around Creating a State EITC in California »
Momentum for creating a state Earned Income Tax Credit (EITC) in California is building. As we discussed in a recent report, a state EITC would foster economic security among low- and moderate-income workers by building on the federal credit of the same name. Several EITC proposals are currently being discussed in the Capitol, and to help policymakers assess their relative merits, we’ve compiled an analysis by the Institute on Taxation and Economic Policy (ITEP) estimating how each proposal would benefit California’s workers and their families. » Read more about: How Would Current State EITC Proposals Benefit California’s Workers and Their Families? »
On February 25, 2015, the Assembly Budget Committee No. 1 on Health and Human Services held a hearing on potential poverty-reduction strategies. Budget Center Executive Director Chris Hoene provided invited testimony on how a state Earned Income Tax Credit (EITC) could help address economic hardship.
As policymakers grapple with how to ensure economic security for the 5.6 million Californians living in poverty, one option needs to be part of the discussion: a state Earned Income Tax Credit (EITC). A state EITC could give millions of Californians a much-needed economic boost by building on the successful federal EITC, a tax credit that has been instrumental in lifting families out of poverty and helping them make ends meet.
How would a state EITC work in California? » Read more about: Top Things to Know About a State EITC for California »
A new CBP report discusses the benefits of establishing a California Earned Income Tax Credit (EITC) and the key policy considerations in creating this state credit.