News Round Up: October 30, 2023

Top Story: Maine’s legislature recently passed a new state Child Tax Credit (CTC) valued at $300 per child under 17 years old. (News Center Maine)

  • Michigan Kathy Schmatz (R) introduced House Bill 5264, which would create a state CTC valued at 50% of the federal credit. (Michigan House Republicans)
  • The Center on Poverty and Social Policy at Columbia University released a fact sheet detailing how the 2021 expanded federal CTC affected child poverty rates in each state. According to the report, the greatest positive impact on poverty reduction was in states with comparatively lower costs of living and higher pre-tax and transfer poverty rates. (Center on Poverty and Social Policy, Columbia University)
  • The Center on Budget and Policy Priorities (CBPP) urges policymakers to consider re-expanding the federal Earned Income Tax Credit (EITC) to support and supplement household incomes for millions of adults in low-wage professions without children. (Center on Budget and Policy Priorities)
  • The Institute on Taxation and Economic Policy (ITEP) released a report detailing how a local EITC’s “structure, eligibility, accessibility, and sustainability” can influence the credit’s reach and impact across communities. ITEP analyzed lessons learned from three local refundable EITCs and explored how the programs’ successes helped foster healthier, stronger, and more equitable communities. (Institute on Taxation and Economic Policy)
  • Every week, TCWF spotlights one of several partner organizations and the remarkable work happening within their respective states. This week we highlight a recent report from the West Virginia Center on Budget and Policy (WVCBP), which details how creating refundable state tax credits can provide families in crisis with economic support and can reduce child maltreatment. (12 WBOY)
  • #ICYMI: Tax Credits for Workers and Families (TCWF) highlighted recent legislation around Massachusetts’s increased state Child and Dependent Care Tax Credit (CDCTC) and EITC. The legislation marked the end of a nearly two-year debate between the state House and Senate, effectively expanding the state CDCTC to $310 per dependent for fiscal year 2023, then to $440 per dependent for 2024 and beyond. The state EITC was raised from 30% to 40% of the federal rate. (Tax Credits for Workers and Families)
  • #ICYMI: TCWF underscored the need to promote policies that establish a more equitable tax code, such as expanding the federal EITC, to support indigenous mothers in low-wage professions and reduce financial barriers for our young indigenous workers. (Tax Credits for Workers and Families)
  • #ICYMI: To mark National Hispanic Heritage Month, TCWF discussed how accessible information about the federal EITC, increased promotional awareness, and an expansion of the federal tax credit to tax filers with an Individual Taxpayer Identification Number (ITIN) would allow more immigrant workers and families to benefit from the tax credit. (Tax Credits for Workers and Families)
  • #ICYMI: TCWF shared how advocates can create a bridge between financial planning and claiming federal and state tax credits by increasing tax credit awareness, collaborating with local organizations, and helping individuals integrate tax credits into their long-term financial goals. (Tax Credits for Workers and Families)