News Round Up: July 2, 2018
Here are some highlights from the past week’s news on family tax credit issues:
Top Story: New Jersey and Vermont both enacted state budgets for Fiscal Year 2019 that include expanding their state-level Earned Income Tax Credits (EITCs) for lower-wage workers. Vermont’s EITC will immediately increase from 32 to 36 percent of the federal credit, while New Jersey’s EITC will slowly increase from 35 to 40 percent of the federal credit by 2020. New Jersey’s budget also includes the creation of a new state-level Child and Dependent Care Tax Credit for households with income below $60,000. (TCWF)
- Policy Matters Ohio urged Ohio lawmakers to expand the state’s EITC from 10 to 20 percent of the federal credit and make it refundable as part of a broader set of policy recommendations aimed at rebalancing the state’s income tax. (Policy Matters Ohio)
- Angela Rachidi of the American Enterprise Institute (AEI) looked at the declining number of births in the U.S. and recommended Congress take steps to “support fertility without hurting marriage,” such as expanding income eligibility for the EITC and increasing the credit for married couples. (AEI)
- The Annie E. Casey Foundation released its 2018 KIDS COUNT Data Book, which tracks children’s wellbeing across all 50 states. Many state-level advocates, including those in Arkansas, Michigan, and Mississippi, pointed to their state’s low ranking in the Data Book as evidence of the need to enact state-level EITCs or expand existing credits.
- The IRS unveiled a new postcard-sized tax return form that consolidates the formerly separate lines for tax credits into one single line. Many tax experts worry that this new change will make it harder for low-income taxpayers to claim the EITC and other credits. (NPR)
- We blogged about California’s new legislation to expand their state’s EITC to young workers and seniors. (TCWF)