News Round Up: February 6, 2023
Top Story: At the State of the Union Address, President Biden spoke on the importance of reviving the federal expansion of the Child Tax Credit (CTC), which lifted nearly 3 million children out of poverty and supported families through the pandemic: “Let’s restore the full Child Tax Credit, which gave tens of millions of parents some breathing room and cut child poverty in half, to the lowest level in history.” (White House)
- As part of his 2023 budget proposal, Connecticut Ned Lamont (D) included a permanent increase to the state Earned Income Tax Credit (EITC) from 30.5% to 40% of the federal rate. (CT Insider)
- As tax season approaches, District of Columbia Mayor Muriel Bowser (D) and the Department of Insurance, Securities and Banking (DISB) reminded eligible residents to claim valuable tax credits, including the DC EITC and the DC Keep Child Care Affordable Tax Credit. (Office of Mayor Muriel Bowser)
- During the first week of session, two bills to expand Michigan’s EITC were passed. House Bill 4002 and Senate Bill 3 would expand the tax credit from 6% to 30% of the federal rate and be retroactively available for the 2022 tax year. A final bill will need to be approved before reaching Gov. Gretchen Whitmer’s desk. (Michigan Advance, MLive)
- A new Minnesota bill sponsored by Rep. Zack Stephenson (DFL) would expand the state’s Working Family Tax Credit – considered the state EITC – from 3.9%-12.5% to 9%-15%. The bill would also raise the maximum eligible income threshold from $33,140 to $43,000. (Minnesota Legislature)
- Ohio Mike DeWine (R) released his 2023 budget proposal, which included a child tax deduction of $2,500. Policy Matters Ohio noted that the governor’s proposal falls short as compared to the federal expanded CTC and would fail to serve the families who need the tax credits most. (WTOV, Policy Matters Ohio)
- A group of House Democrats formed the “Congressional Dads Caucus,” which will focus and advocate for legislation that includes an expansion of the federal CTC, paid parental leave, and universal childcare. (Business Insider)
- The Institute on Taxation and Economic Policy (ITEP) looks at a new report highlighting an ongoing trend of racial disparities among EITC audit recipients and examines how increased funding for tax enforcement could mitigate the issue. (Institute on Taxation and Economic Policy)
- In celebration of National EITC Awareness Day, North Carolina Roy Cooper (D) and Illinois Gov. JB Pritzker (D) reminded eligible state residents to take advantage of state and federal tax credit benefits. (Office of NC Governor Roy Cooper, Chicago Defender)