News Round Up: March 8, 2021
Top Story: A new blog post from the Institute on Taxation and Economic Policy (ITEP) analyzed the House and Senate’s recently passed versions of President Joe Biden’s American Rescue Plan, estimating the average income benefit and tax changes for Americans across different income groups. (ITEP)
- A recent report from the Center on Budget and Policy Priorities (CBPP) examined the House’s COVID-19 relief bill, which includes expansions of the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC), and its impact for Americans who have been hardest-hit by the pandemic. (CBPP)
- A new fact sheet from the National Women’s Law Center (NWLC) summarizes the maximum value of Child and Dependent Care Tax Credits (CDCTCs) in 28 states, which can help families balance their out-of-pocket child and dependent care costs with reduced taxes or cash refunds in some states. (NWLC)
- A new report from CBPP reviewed the effectiveness of state EITCs as a policy lever to support families, reduce poverty, and advance equity, asserting that lawmakers in the 21 states without EITCs should pursue legislation to create a state-level credit. (CBPP)
- A bill to expand New Mexico’s Working Families Tax Credit, the state’s version of the federal EITC, passed the House Taxation and Revenue Committee and will soon be heard on the House floor. The bill increases the credit’s value and grants eligibility to ITIN filers and individuals 18-24. (Los Alamos Daily Post)
- New Jersey Phil Murphy (D)’s proposed FY2022 budget would make senior citizens without dependents eligible for the state EITC, which was expanded last year from 35 to 40% of the federal credit. (Insider NJ)
- Maine state lawmakers introduced legislation to fully fund the state EITC, which was doubled in 2019, by adding a temporary 3% tax on income over $200,000. (Maine Beacon)