Vice President for State Fiscal Policy
A number of states are considering creating or expanding earned income tax credits (EITCs), Pew Stateline explains, an idea that has received support from both sides of the aisle. That’s great news for low- and moderate-income working families. It’s also good for the nation’s future economic prospects since state credits leverage the federal EITC’s well-documented, long-term positive effects on children. As our recent paper explains, state EITCs:
That’s why twenty-five states plus Washington, D.C. have EITCs (see map). Last year, Colorado and Ohio created EITCs while Oregon and Iowa improved theirs. As a slowly improving economy boosts the fiscal outlook for states, lawmakers should follow suit and adopt or expand EITCs to help working families and children recover, too.