News Round Up: July 12, 2023
Top story: Maine lawmakers recently approved an $800 million budget that will fund a number of progressive policies, including making the state Child Tax Credit (CTC) fully refundable. Economists project that the newly revised CTC could alleviate severe economic hardships faced by thousands of Maine children. (Maine Beacon)
- Ohio advocates propose making the state EITC refundable to combat rising food costs. (Ideastream Public Media)
- The Institute on Taxation and Economic Policy (ITEP) spotlights 17 states that created or enhanced their state Earned Income Tax Credit (EITC) or state CTC to date in 2023. (Institute on Taxation and Economic Policy)
- The Internal Revenue Service (IRS) estimates that nearly 1.5 million taxpayers, including workers eligible for the federal EITC, have not filed their 2019 returns and are missing out on valuable tax refunds. An estimated $1.5 billion in tax refunds have yet to be claimed. (Miami Herald)
- The IRS recently proposed implementing a no-cost Direct File, which would allow taxpayers to directly file their returns online. The new filing option aims to reduce tax filing stress and ensure that filers eligible for the federal EITC and CTC, particularly non-English-proficient, rural, and newly eligible households, can receive their credits. (Center for American Progress)
- A recent report found that families who received the 2021 expanded federal CTC spent over 75% of the expanded payments on household necessities. The report also underscored significant improvement in long-term child outcomes by reducing family stress and increasing family investment in child well-being. (The Brookings Institution)
- Research highlights how the tax system’s algorithm disproportionately audits Black taxpayers, especially single Black fathers claiming the federal EITC, as compared to their non-Black counterparts. (New Pittsburgh Courier)
- Every week, TCWF spotlights one of several partner organizations and the remarkable work happening within their respective states. This week we share Connecticut Voices for Children’s 2023 Legislative Summary that recaps major highlights from Connecticut’s 2023 legislative session, including the state’s EITC expansion from 30.5% to 40% of the federal credit. (Connecticut Voices for Children)