News Round Up: January 25, 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. Remember – you also can track news coverage throughout the week by visiting our website, where you can filter news by a specific credit or state.
Top Story: Chuck Marr, senior director of federal tax policy at the Center on Budget and Policy Priorities (CBPP), examined President Biden’s proposal to expand the federal Earned Income Tax Credit (EITC) for workers without dependent children and how it would benefit young essential workers across the country. (CBPP)
- The National Taxpayer Advocate released their annual 2021 Purple Book, which outlines 66 legislative recommendations to strengthen taxpayer rights and improve tax administration, including restructuring the EITC to make it easier to file and offering the credit during national disasters. (National Taxpayer Advocate)
- A new report from CBPP analyzed President Biden’s proposal to expand the federal Child Tax Credit (CTC) and make it fully refundable. CBPP estimated that it would lift almost 10 million children above or closer to the poverty line and provide aid to essential workers. (CBPP)
- Connecticut State Representative Sean Scanlon (D-Guilford) plans to introduce legislation to create a state CTC worth up to 30 percent of the federal credit that would phase in over four years. (NBC Connecticut)
- Washington State Budget and Policy Center urged state lawmakers to pass new legislation to create a Recovery Rebate by updating the state’s Working Families Tax Credit. The update would provide low-income state workers with a base credit of $500 and expand relief to Individual Taxpayer Identification Number (ITIN) filers. The bill is now in the House Finance Committee for consideration. (The Islands’ Sounder; The Washington State Budget and Policy Center)