News Round Up: January 16, 2023

News Round Up: January 16, 2023

Top Story: On Monday, Montana Gov. Greg Gianforte (R) unveiled his state budget plan, which includes a proposal for $1 billion in property and income tax deductions, the addition of a $1,200 state Child Tax Credit (CTC) for children under six years old, and the expansion of the Earned Income Tax (EITC) from 3% of the federal credit to 10%. (KBZK, State of Montana Newsroom)

• Arizona Gov. Katie Hobbs (D) proposed a $17.1 billion state budget that earmarks $50 million per year to support low-income households, including a new state CTC that would provide families with children with $100 per child annually. (Tucson)
• Michigan Sen. Kristen McDonald Rivet (D) proposed legislation to expand the state EITC from 6% to 30%, which would match the federal rate. The increase would result in an annual income increase of roughly $600 for Michigan’s working families. (WSGW)
• Nebraska Sen. Danielle Conrad (D) introduced Legislative Bill 294, which would provide eligible families with a refundable state CTC of up to $1,000 per child. (Nebraska Examiner)
• New York Gov. Kathy Hochul (D) announced her plan to mobilize government resources to better support New Yorkers, including implementation of a “mobile document upload” and a direct deposit capability to avoid the risk of missed refunds from state tax credits or lost mail-in documents. (Office of Governor Kathy Hochul)
• In 2021, Washington enacted the Working Families Tax Credit, which was modeled after the federal EITC. This year, single-filers and families eligible for the tax rebate will receive between $300 and $1,200. (KPQ)
• The Institute on Taxation and Economic Policy (ITEP) analyzed a package of rules approved by the Republican majority that risks undermining the progress of the federal CTC and EITC. Known as the CUTGO rule, any adjustments made to a mandatory spending program, such as the refundable aspect of CTCs and EITCs, would be cut from another mandatory spending, such as Social Security or Medicare. (Institute on Taxation and Economic Policy)
• Next Friday, January 27^th marks National EITC Awareness Day. Advocate groups, elected officials, schools, and everyday families mark the day by voicing their support for federal and state tax credits. This year, for example, the Georgia Work Credit (GWC) coalition is encouraging Georgians to share the importance and necessity of state tax credits for working families across their social media channels.