Families’ access to wealth has largely determined how they’re affected by COVID-19, with wealthier and higher-paid families mostly avoiding the worst health and economic effects. This divergence reflects both racial and class inequities. As states face sizeable budget shortfalls due to the pandemic, they should raise taxes on wealthy people to preserve funding for crucial priorities such as...
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POLICY INSIGHT
BEYOND THE NUMBERS
BEYOND THE NUMBERS
States Should Follow California and Colorado, Extend EITC to More Immigrants
August 4, 2020
States should follow the recent lead of California and Colorado and make their state Earned Income Tax Credits (EITCs) more inclusive for people regardless of their immigration status. That would help expand economic opportunity for all their...
3 Reasons Why States Should Tap Rainy Day Funds Now
June 17, 2020
The grim outlook for state economies over the next year will be even grimmer if states don’t fully use an important tool: their rainy day funds. Doing so can help lessen COVID-19’s health and economic harm and help states focus their responses on the hardest-hit...
States Should Support Struggling Families through EITCs
March 9, 2020
Governors and lawmakers in numerous states have proposed creating or expanding state Earned Income Tax Credits (EITCs) this year. By approving these proposals, states can build on the federal EITC’s well-documented, long-term benefits for children while improving...
States Still Have Time to Support the 2020 Census
July 31, 2019
States should take steps now to help ensure a full and accurate census count.
States Improving Tax Credits for Working Families
July 9, 2019
Six of the 29 states (plus the District of Columbia and Puerto Rico) with Earned Income Tax Credits (EITCs) are expanding them this year, which will help low-paid workers and their families meet basic needs. (See map.) These expansions will supplement the federal EITC’s...
Alaska Governor Embraces Formula for Decline as Colorado Lawmakers Vote to Relax Theirs
July 1, 2019
Alaska Governor Mike Dunleavy is proposing two constitutional amendments that would severely restrict the state’s ability to invest in its future — much like the “Taxpayer Bill of Rights” (TABOR) in Colorado that has driven state funding crises ever since its enactment more than two decades ago, and that also has limited investments in education, infrastructure, and other key building blocks...
Delaware Should Give Lowest-Income Working Families Full Access to EITC
June 20, 2019
Delaware policymakers have another chance this year to enable thousands more working households to get the full value of the state’s Earned Income Tax Credit (EITC), even if it exceeds their income taxes. This change, to make the credit “refundable,” would help working families earning very low wages better meet their basic needs.
Many low-wage jobs...
States Continue Raising Low-Wage Worker Pay
May 15, 2019
Millions of low-paid workers in Illinois, Maryland, New Jersey, and New Mexico will soon have higher wages and a better shot at economic success thanks to new state minimum wage increases.
Virginia Misses Chance to Advance Racial Equity
April 10, 2019
Virginia ended its 2019 legislative session after enacting a new tax law that failed to expand the state’s Earned Income Tax Credit (EITC) for low-wage workers. An EITC expansion would have reduced racial inequities in income since the state’s low-wage workers are disproportionately African American, in part due to historical racism and...
