News Round Up: June 12, 2023

Top Story: Colorado Governor Jared Polis (D) signed House Bill 23-1112, expanding the state Earned Income Tax Credit (EITC) and the state Child Tax Credit (CTC). Under new legislation, the state EITC value increases from 25% to 38% of the federal rate, and the fully refundable state CTC is valued up to $1,200 for eligible families with children under 6 years old. (Pagosa Daily Post)

  • This Juneteenth, TCWF emphasizes how tax credits, such as the EITC and CTC, can address years of institutional and systemic inequities and are some of the many tools that can support Black Americans in achieving economic freedom. (Tax Credits for Workers and Families)
  • #ICYMI: Tax Credits for Workers and Families (TCWF) underscored how sound representation in demographic data can help better address equity issues and expand access to social programs, such as the EITC and CTC, for eligible members of the Asian American, Native Hawai’ian, and Pacific Islander (AANHPI) communities. (Tax Credits for Workers and Families)
  • Connecticut Ned Lamont (D) recently expanded the state EITC from 30.5% to 40% of the federal rate as part of the FY2024-25 biennial state budget. (The Office of Governor Ned Lamont)
  • The Pennsylvania House advanced a pair of bills that, if enacted, would create a new state EITC valued at 25% of the federal rate, and would incrementally increase the value of the state Child and Dependent Care Tax Credit (CDCTC) by 5% every year until it reaches 50% in 2027. (The Huntsville Item)
  • The Rhode Island House approved a $14 billion state budget proposal that expands the state EITC from 15% to 16% of the federal rate. Next, the proposal will head to the state Senate. (Huron Daily Tribune)
  • The Massachusetts Senate unveiled a $590 million tax relief proposal that would increase the state CDCTC from $180 to $310 per qualifying child or dependent and increase the state EITC from 30% to 40% of the federal rate. (WBUR)
  • A group of U.S. Representatives recently proposed the American Family Act, which would reimplement the 2021 federal CTC expansion and make the expansion permanent. (Forbes)
  • Should the American Family Act take effect next year, the Institute on Taxation and Economy Policy (ITEP) estimates that the plan would benefit over 60 million children nationwide. (Institute on Taxation and Economic Policy)
  • The Center on Budget and Policy Priorities’ (CBPP) recent report emphasizes how expanding the CTC and promoting other working family benefits outweigh concerns about unemployment among parents who claim the tax credit. (Center on Budget and Policy Priorities)
  • There are two federal-level proposals on the table for the upcoming economic legislation – one that would re-expand the federal CTC and one that would promote corporate tax breaks. The CBPP urges policymakers to re-expand the federal tax credit and to prioritize the needs of children ahead of corporate interest. (Center on Budget and Policy Priorities)
  • Every week, TCWF spotlights one of several partner organizations and the remarkable work happening within their respective states. This week brings attention to the Maine Center for Economic Policy and their ongoing efforts to promote and expand the state CTC. (Maine Center for Economic Policy)