News Round Up: February 28, 2022
Top Story: The passed a $74 million Democratic proposal that creates new state-level Earned Income Tax Credit (EITC) for low-income Arizona families. The plan will give the average family $128 per year, while a family of three children could receive an upward of $300 per year. (12 News)
- Mitt Romney (R-Utah) is pushing for the revival of the expanded Child Tax Credit (CTC) with proposed amendments, including added work requirements, for hopes to gain bipartisan approval. (NBC)
- Without the 2021 CTC expansion of $3,000 and $3,600, the CTC rate will return to $2,000 per dependent. President Biden has proposed extending the expanded credit but needs the support of all Democratic senators to move forward. (Fortune)
- A new report from the New Jersey Policy Perspective (NJPP) concludes that a state-level CTC would make New Jersey a more affordable place to raise a family. Two plans modeled after federal-level acts were considered for the analysis, and both proved to provide significant aid to NJ’s low- and middle-income families with children. (KPVI)
- The U.S. Department of Education announced the protection of CTC benefits for student loan borrowers. Under previous policy, borrowers with loans in default could have seen a reduction in tax credit benefits to offset outstanding federal debt. (NewsBreak)
- A survey conducted by ParentsTogether Action revealed that since the expiration of the 2021 CTC expansion, nearly 60% of assessed parents have not been able to afford enough groceries and 22% noted they could no longer afford their families’ basic needs. (National Interest)
- The Internal Revenue Service (IRS) urged families to check if they’re qualified for the Child and Dependent Care Tax Credit (CDCTC) due to the recent expansion potentially leading to a larger tax break for many households, even ones that might not have qualified in the past. (CNBC)
- Alabama Governor Kay Ivey signed House Bill 231 into law which will allow families who received the federal CTC to save money on their taxes this year. (WSFA)
- A Wisconsin parent shared her story and experience with the expanded CTC benefits and the significance of its essential financial support. (PBS Wisconsin)
- The Department of Consumer and Worker Protection (DCWP) and other community members held a “Day of Action” in the Bronx, New York to raise awareness for tax credits such as the CTC, EITC, and CDCTC. (AMNY)
- Massachusetts Governor Charlie Baker’s recently proposed $700 million tax relief plan that promises to assist parents, low-income workers, and seniors in Massachusetts raised questions among lawmakers as to which demographics it will truly benefit. (wbur)