News Round Up: June 26, 2023
Top Story: Two Pennsylvania proposals are on the table that would create a state Earned Income Tax Credit (EITC) and expand the state Child and Dependent Care Tax Credit (CDCTC). If enacted, House Bill 1259 would incrementally expand the state CDCTC from 30% to 50% of the federal rate by 2028. A second bill, House Bill 1279, would create a state EITC valued at 25% of the federal credit. Both proposals are with the state Senate. (Spotlight PA)
- #ICYMI: In recognition of Stand for Children Day, Tax Credits for Workers and Families (TCWF) emphasizes the significance of permanently expanding the federal CTC and highlights states working to supplement the financial gap since the expansion’s expiration in 2021. (Tax Credits for Workers and Families)
- #ICYMI: For Juneteenth, TCWF underscores how tax credits can help address years of institutional and systemic inequities by acting as a tool to support Black Americans in moving towards economic freedom. (Tax Credits for Workers and Families)
- A group of Senate Democrats recently introduced the Working Families Tax Relief Act, which would reimplement and make permanent the American Rescue Plan’s 2021 federal CTC expansion and federal EITC expansion. (KTVZ)
- The Tax Policy Center highlights how Ohio legislators can best support everyday families amid this year’s tax cut discussions by enacting a state CTC or expanding existing tax benefits, like the state EITC. (Tax Policy Center)
- In a new post, Policy Matters Ohio underscores the weaknesses in the recent state Senate tax plan, which would disproportionately benefit the rich and adversely affect low- and middle-income Ohio (Policy Matters Ohio)
- The Federal Reserve Bank of Dallas published research exploring how expanding the federal EITC could further promote labor force participation among Black mothers and reduce racial income gaps between Black and white families. (Federal Reserve Bank of Dallas)
- The Center on Budget and Policy Priorities (CBPP) urges policymakers to reject the recent House Ways and Means Committee Republican tax package, which disproportionately benefits corporate shareholders and leaves children behind. (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 we look at the Colorado Fiscal Institute and their enormous efforts to pass HB23-1112, which expanded the state EITC and CTC.