News Round Up: January 22, 2024

Top Story: Congressional tax committee leaders recently announced plans to expand the federal Child Tax Credit (CTC) as part of a deal that would improve tax credit access to low-income families and extend business tax cuts. If enacted, the expansion would be in effect for three years and would benefit roughly 16 million children in its first year. (Center on Budget and Policy Priorities)

  • Colorado House Republicans launched a brief filibuster over HB24-1084, which repeals and reenacts the expanded state Earned Income Tax Credit (EITC) to address concerns around HB23B-1002’s constitutionality. The Republicans opposed using the Taxpayer’s Bill of Rights (TABOR) surplus dollars to fund the expanded tax credit. (Colorado Politics)
  • The District of Columbia’s Tax Revision Commission includes creating a local CTC and improving the city’s EITC as part of a 39 draft policy package aimed at establishing a stronger and fairer tax code. (Institute on Taxation and Economic Policy)
  • Indiana House Democrats shared plans to establish a Child and Dependent Care Tax Credit (CDCTC) as part of their 2024 agenda. (WRTV)
  • Policy Matters Ohio highlights how the state tax code has gradually regressed in the past two decades, owed in part to legislative decisions that eliminated state income tax brackets, prioritized corporate tax breaks, and failed to make the state EITC refundable. (Policy Matters Ohio)
  • The Oregon Center for Public Policy calls on state lawmakers to revise the current tax system and expand the state EITC following the recent Institute on Taxation and Economic Policy (ITEP) report analyzing tax systems across the nation. (KXL)
  • West Virginia Jim Justice announced the creation of a new CDCTC valued at 50% of the federal rate as part of a recently unveiled tax cut package. (Office of Governor Jim Justice)
  • A recent ITEP report analyzes local tax systems across all 50 states and discusses how regressive tax codes lead to higher rates of inequity. The report shares how several states, including Massachusetts and New Mexico, have taken steps to strengthen their tax codes by implementing progressive policies, such as tax credits. (Institute on Taxation and Economic Policy)
  • Every week, Tax Credits for Workers and Their Families (TCWF) spotlights one of several partner organizations and the remarkable work happening within their respective states. This week we highlight Georgia Budget and Policy Institute (GBPI)’s plans to enact a state EITC and CTC and expand the state CDCTC to full-refundability at 100% of the federal rate as part of the organization’s 2024 policy priorities. (Georgia Budget and Policy Institute)
  • TCWF highlights a few areas where tax credit proponents can focus their advocacy efforts this EITC Awareness Day. (Tax Credits for Workers and Their Families)