News Round Up: May 4, 2020

The COVID-19 pandemic is disproportionately affecting low-income communities and exacerbating economic inequality across the country. Throughout this crisis, TCWF will compile news, legislation, and research on how tax credits and other income-boosting policies can provide much-needed relief for the hardest-hit communities:

Top Story: To help mitigate COVID-19’s financial burden on low-wage workers, U.S. Senate Democrats called for a temporary expansion of the federal Earned Income Tax Credit (EITC) to fill in gaps that leave out young workers, workers without dependent children and families with the lowest incomes. They also called for expanding the Child Tax Credit by making the credit fully refundable and increasing the value for children ages six and under. (U.S. Senator Kamala Harris of California)

  • Marie Sapirie, contributing editor at Tax Notes, highlighted why the EITC and its existing structure would be the best avenue for targeting low- to moderate-income workers for another round of stimulus payments. (Forbes)
  • Angela Rachidi, Rowe Scholar in poverty studies at the American Enterprise Institute, offered recommendations for how Congress can bolster the social safety net for people with poor health and disabilities. (Spotlight on Poverty and Opportunity)
  • We blogged about McKinsey & Company’s new report that highlights COVID-19’s disproportionate impact on black communities and offers possible solutions. (TCWF)