News Round Up: May 17, 2021
Top Story: Missouri state lawmakers passed a state Earned Income Tax Credit this week. The credit will initially be worth 10% of the federal credit and could rise to 20% with an increase in state revenues. (TCWF)
- Today, May 17, is Tax Day. A new blog post from the Center on Budget and Policy Priorities (CBPP) shared graphics illustrating Biden administration proposals and accomplishments, such as expanding the Child Tax Credit (CTC), that help address inequities in the tax system. (CBPP)
- The Biden administration announced that the IRS will begin making monthly payments of the CTC on July 15, and nearly 90% of families with children will automatically begin receiving the credit. (The Hill)
- A new blog post from the Institute on Taxation and Economic Policy (ITEP) assessed the impact of making the American Rescue Plan’s temporary expansion to the federal EITC permanent, estimating it would benefit nearly 20 million Americans. (ITEP)
- A new report from CBPP evaluated President Biden’s American Families Plan, which includes expanding the federal CTC, and how the landmark legislative package could advance equity. (CBPP)
- A recent report from the Urban-Brookings Tax Policy Center examined how the American Rescue Plan’s increases to the federal EITC and CTC could impact state taxes. (Tax Policy Center)
- Colorado lawmakers recently proposed a major package of tax legislation aligned with several proposals from Gov. Jared Polis (D), including doubling the state EITC and funding a new refundable CTC. (CPR News)
- Maine Gov. Janet Mills (D) released a budget proposal that includes expanding the state EITC and CTC to benefit low- and middle-income Mainers. (Maine Beacon)
- Michigan’s state Senate passed a state CTC that would allow residents to claim a $500 credit for each of their dependents from 2022 through 2025. (The Detroit News)
- Oklahoma Gov. Kevin Stitt (R) announced the state GOP’s budget proposal, which would restore the state EITC. (KFOR)