News Round Up: May 14, 2018

Here are some highlights from the past week’s news on family tax credit issues:

Top Story: In a special session, the Indiana House passed HB 1316, which includes a provision that would require the state to comply with the federal use of the chained CPI method to calculate cost of living adjustments for the Earned Income Tax Credit (EITC). Should HB 1316 pass the full legislature, the Institute on Taxation and Economic Policy (ITEP) projects that in 2019, Indiana will lose $12 million in federal EITC returns and $700,000 in state EITC returns. (Indiana Institute for Working Families)

  • The Massachusetts Senate Ways and Means Committee approved a $41 billion state budget that includes an increase to the state’s EITC from 23 percent to 30 percent of the federal credit. (New England Public Radio)
  • California Governor Jerry Brown (D) proposed a $137.6 billion general fund budget that includes expanding eligibility for the state’s EITC to younger workers and those above 65. (The Washington Post)
  • A Star Tribune editorial urged Minnesota lawmakers to lower taxes on working families by increasing the state’s EITC, called the Working Family Credit. (Star Tribune)
  • New research that examines six major anti-poverty programs: Social Security, Supplemental Security Income, Temporary Assistance for Needy Families, housing assistance, the EITC and SNAP finds that all six succeed in serving their goal of reducing poverty. (Los Angeles Times)