Update, July 31: We’ve clarified the description of Maryland’s EITC expansion.
Seven states boosted — or will soon boost — their Earned Income Tax Credits (EITCs) this year to help low-wage working families meet basic needs. These state EITC expansions will supplement the federal EITC’s well-documented long-term positive effects on children, improve racial and gender equity, and improve the nation’s economic prospects.
This year’s gains include:
Strong state EITCs — alongside raises in the minimum wage — help families struggling on low wages keep working and make ends meet. That helps build stronger future economies; research shows that when economically struggling parents can better provide for their children’s needs, their children do better and go further in school and earn more as adults. State EITCs also help give local businesses a boost because families getting the EITC spend nearly every dollar they earn in their communities. And state EITCs improve racial and gender equity because they’re targeted to the lowest-earning workers, where women and people of color are disproportionally represented. With so many benefits, the momentum around state EITCs is worth celebrating.