News Round Up: February 1, 2021
The COVID-19 pandemic is disproportionately affecting low-income communities and exacerbating economic inequality across the country. Throughout this crisis, TCWF will compile news, legislation, and research on how tax credits and other income-boosting policies can provide much-needed relief for the hardest-hit communities.
Top Story: A new report by the Institute on Taxation and Economic Policy (ITEP) examined President Joe Biden’s proposal to expand the Child Tax Credit (CTC) and found that it would boost the after-tax income for the poorest 20% of families by 37 percent. (ITEP)
- In celebration of Earned Income Tax Credit (EITC) Awareness Day, Roxy Caines, director of the Center on Budget and Policy Priorities’ (CBPP) Get It Back Campaign, shared why it is critical to ensure low-income households claim the EITC this year. (CBPP)
- A new report from CBPP examines what improvements need to be made to economic security programs like the EITC and CTC to increase their effect on ending racial disparities and inequity. (CBPP)
- A new report from CBPP examines how the current social safety net fails to meet the needs of young workers without minor children, and how programs like the EITC can be strengthened to better support those workers. (CBPP)
- Iowa state legislators are weighing a proposal from House Republicans to double the maximum net income threshold for the state Child and Dependent Care Credit from $45,000 to $90,000 as part of an effort to increase childcare options. (The Daily Nonpareil)
- Arkansas State Sen. David Wallace (R-Leachville) introduced legislation to enact a state EITC worth 10% of the federal credit. (KAIT 8)
- Jan. 29 was EITC Awareness Day, and we blogged about the top 10 reasons why we love the EITC. (TCWF)