News Round Up: May 27, 2024
Top Story: Colorado Gov. Jared Polis (D) recently expanded the state Earned Income Tax Credit (EITC) from 38% to 50% of the federal rate for 2024. The state EITC will also increase from 25% to 35% and from 20% to 25% for tax years 2025 and 2026, respectively, as part of the same bill. Additionally, the new law merges the state Child and Dependent Care Tax Credit (CDCTC) and the Low-income Child Care Expenses Tax Credit to create a single CDCTC valued at 70% of the federal rate. (Colorado House Democrats)
- #ICYMI: Tax Credits for Workers and Their Families (TCWF) outlines and compares two proposals under consideration in the New York legislature that would allocate $500 million of the state’s final budget to strengthen local tax credits for low- and middle-income families with children. (Tax Credits for Workers and Their Families)
- #ICYMI: TCWF highlights how expanding the federal EITC and CTC can provide a more robust safety net for workers in hazardous jobs and demonstrate policymakers’ commitment to worker safety and to promoting economic resilience for U.S. families. (Tax Credits for Workers and Their Families)
- The Illinois Senate advanced a new state CTC valued at $700 per child 12 and younger as part of Gov. JB Pritzker’s $53.1 billion 2025 Fiscal Year budget. The budget next heads to the state House for approval. (My Stateline)
- First Five Years Fund (FFYF) released a factsheet comparing bills currently in the 118th Congress that could mitigate the cost of childcare for working families, including by enhancing the federal CDCTC. (First Five Years Fund)
- The Bipartisan Policy Center released a report outlining best practices for enhancing coordination among federal, state, and local policymakers and offers ways to optimize tax credit design and implementation. (Bipartisan Policy Center)
- Policy Matters Ohio published testimony in support of SB 256, which would create a refundable state EITC valued at up to 12% of the federal rate and increase the state’s minimum wage to $15 per hour. The full testimony can be read here. (Policy Matters Ohio)
- The Center for American Progress released an opinion piece in April detailing the significance of expanding the federal EITC to provide low-income working seniors with the financial boost needed to support retirement security. (The Hill)
- The U.S. tax system continues to face significant inequities that predominantly impact Black and low-income taxpayers, who are frequently audited for claiming the federal EITC, leading to calls for tax reform and fairer practices from the Internal Revenue Service (IRS). (Afro News)