By Devin Simpson
Two Senate Democrats have committed to expanding the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) as part of “tax reform that rewards work.”
Senators Tammy Baldwin (D-WI) and Cory Booker (D-NJ) this week introduced the Stronger Way Act in response to the tax reform framework released by Congressional Republicans. Their plan focuses on boosting wages for low and middle-income families by strengthening policies that incentivize work and support local job creation, such as expanding the EITC and CTC.
Specifically, the Stronger Way Act would strengthen the EITC for workers without dependent children and increase the rate at which the credit phases in, allowing more families to qualify. The plan also makes the CTC fully refundable beginning with the first dollar earned, indexes the credit to inflation and increases the rate at which the credit phases in. In doing so, the plan promises to “simplify the tax code” by making the eligibility requirements for the EITC and CTC more consistent.
Job creation is also a priority for Baldwin and Booker. Their plan would create a new jobs grant program to encourage the creation of more transitional jobs. This program would strengthen existing efforts to move people into the workforce.
To learn more about the tax plan, click here.