President Biden’s $1.9 trillion emergency relief plan includes a Child Tax Credit expansion that would lift 9.9 million children above or closer to the poverty line, including 2.3 million Black children, 4.1 million Latino children, and 441,000 Asian American children. It also would lift 1.1 million...
off the charts
POLICY INSIGHT
BEYOND THE NUMBERS
BEYOND THE NUMBERS
President-Elect’s Plan Includes Vital EITC Increase for Adults Not Raising Children
January 15, 2021
The emergency relief plan that President-elect Biden announced yesterday would expand the Earned Income Tax Credit (EITC) for over 17 million adults not raising children at home who work hard at important, but low-paid, jobs. The EITC is a highly successful wage subsidy that’s earned bipartisan support over the years, but the current credit largely excludes adults who aren’t raising children...
Congress Must Help Struggling Families — as It Helped Highly Indebted Companies
December 4, 2020
COVID-19 and natural disasters from wildfires to hurricanes this year have hit people in low-paying jobs especially hard, with many of them suffering massive job and wage losses. Now, many of these same people face the risk of losing some or all of their Earned Income Tax Credit (EITC) and Child Tax Credit unless policymakers enact — before the next tax filing season — a “lookback” to let...
3 Reasons to Expand EITC for Childless Adults Amid COVID-19
July 16, 2020
In their next economic relief package, policymakers should include a modest but important measure that would temporarily expand the Earned Income Tax Credit (EITC) for tax year 2020 for adults not raising children in their home. This measure, which is in the House-passed Heroes Act, would (1) generate timely, effective fiscal stimulus to help the economy recover, (2) help avoid a poverty spike...
Next Step on Stimulus Rebates: Automatic Delivery for People Receiving SSI and Veterans’ Benefits
April 2, 2020
April 3, 2020: We’ve updated this post.
It’s welcome news that Treasury and the IRS will use the authority that Congress gave them to automatically provide stimulus payments to Social Security and railroad retirement beneficiaries who do not usually file a tax return, instead of making them file one. It’s imperative that they do the same for some 3 million very low-income...
Social Security Beneficiaries Shouldn’t Have to File a Tax Return to Get Stimulus Rebate
March 31, 2020
The Secretary of the Treasury and IRS Commissioner should make a clear public statement that seniors and people with disabilities who receive Social Security won’t have to file a tax return to receive their stimulus rebate.
An IRS newsletter released March 30 suggests that Social...
When Helping Retailers, Don’t Forget Their Workers
March 20, 2020
Amid the frenzy in Washington to enact broad stimulus legislation, Senate Republicans are also proposing to address a tax issue that far predates the current economic emergency: an error in the 2017 tax law that affects the restaurant and retail industries. If policymakers plan to help retailers and restaurant owners by fixing the error — and including the fix in the emerging stimulus...
Congressional Black Caucus’s Push for Childless Workers’ EITC, Then and Now
February 27, 2020
As we celebrate the contributions of African Americans this month, we’d like to highlight a policy area where the Congressional Black Caucus (CBC) — created in 1971, a year after the first observance of Black History Month — has played a pivotal role and where many of its members are now working to build on past achievements. It’s the Earned Income Tax Credit (EITC), particularly the EITC for...
Much of Wealthiest Households’ Income Escapes Annual Tax or Gets Special Breaks
November 13, 2019
High-income, and especially high-wealth, tax filers enjoy many generous tax benefits that can dramatically lower their tax bills, our new report explains. Eliminating or limiting these preferences would make the tax code more progressive and help offset income...
Tax Fix for Restaurant, Retail Owners Shouldn’t Leave Out Millions of Their and Other Workers
October 21, 2019
Policymakers should accompany any provision to aid restaurant and retail owners with provisions to help millions of people who work hard for low pay in restaurants, retail stores, and elsewhere by expanding the Earned Income Tax Credit (EITC) and the low-income part of the Child Tax Credit.
