News Round Up: April 19, 2021
Top Story: Washington state lawmakers passed legislation to fully fund the Working Families Tax Credit – worth 10% of the federal Earned Income Tax Credit (EITC) – last week with bipartisan support. The annual cash rebate worth up to $1,200 will reach 420,000 households across the state. (Washington State Budget & Policy Center)
- Center on Budget and Policy Priorities (CBPP) Senior Director of Federal Tax Policy, Chuck Marr, wrote in a new blog post that the recent expansions to the federal Child Tax Credit (CTC) should become permanent and be delivered monthly to better meet low-income families’ needs. (CBPP)
- A recent report from the Institute on Taxation and Economic Policy (ITEP) examined the impact that state and local tax systems have on racial inequity, emphasizing that regressive tax models used by most states particularly harm people of color. Offering refundable tax credits like the EITC and CTC can help make tax codes more equitable. (ITEP)
- A new report from CBPP evaluated the American Rescue Plan Act’s permanent tax credit expansions for working families in Puerto Rico, who are now eligible for the federal CTC and an annual federal supplement to the territory’s local EITC. (CBPP)
- The National Women’s Law Center (NWLC) recently updated its fact sheet on the Child and Dependent Care Tax Credit (CDCTC) to include the American Rescue Plan Act’s temporary expansions to the credit, urging Congress to make the changes permanent and work to build a stronger childcare system. (NWLC)
- Missouri lawmakers are nearing a deal on a Senate bill to create a state EITC equal to 20% of the federal credit as part of sweeping tax legislation. ( Louis Post-Dispatch)
- The CEOs of two Oklahoma food banks called for state legislators to expand the state EITC in a recent op-ed, noting that budget decreases over the past 20 years have cut state services and led to record levels of people seeking food assistance and other resources. (The Oklahoman)