Tax provisions and the ways these provisions are enforced and administered are steeped in a context of historical racism and ongoing prejudice and discrimination. In a recently released report, The Center on Budget and Policy Priorities (CBPP) outlines the ways the federal tax code impacts racial disparities and explains how the tax-cut law enacted in…
Arkansas Advocates for Children and Families and Children’s HealthWatch recently published a health impact assessment to identify the potential health outcomes of creating a state-level EITC in Arkansas. The report states that a refundable EITC “may be one of the most effective ways to address the poor health outcomes experiences by Arkansans.” The authors recommend…
The 2019 Prosperity Now Scorecard, a resource for data on household financial health on the state and federal levels, finds that an alarming percentage of Americans – especially households of color – are currently living in financial uncertainty. For the first time, the 2019 Scorecard also ranks states on racial disparities. The report recommends enacting…
Research recently published in the University of Chicago’s Journal of Labor Economics looked at long-term impacts of state and federal EITC expansions on children’s education and employment outcomes. The authors found that additional EITC exposure in childhood increased the likelihood of high school and college completion and increased earnings in adulthood.
New research from Rutgers Professor Amanda Agan and Clemson Professor Michael Makowsky – The Minimum Wage, EITC, and Criminal Recidivism – finds that minimum wage policies and the availability of state EITCs can have an impact on recidivism rates. Examining administrative prison release records from almost six million offenders released over 14 years, the researchers found that…
With all eyes on the federal tax debates, it’s important to not lose sight of tax policy discussions and opportunities in the states. State and local tax systems often make it more difficult for families to make their way out of poverty, but the Institute on Taxation and Economic Policy (ITEP) lays out state tax policy tools…
The Carsey School of Public Policy at the University of New Hampshire recently released a report demonstrating the effectiveness of state credits in poverty reduction efforts, particularly for households of color. Using Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC) data from 2010 to 2014, the report finds that families receiving state EITC benefits…
A recent paper by Adele Morris, Brookings Senior Fellow, and Aparna Mathur, Resident Scholar with the American Enterprise Institute, examines the impacts of a potential pairing of a carbon tax with an EITC expansion to childless workers. While a price on carbon via a carbon tax is a key component to stabilizing greenhouse gases (GHGs),…
A new policy brief from the Institute for Research on Labor and Employment at the University of California at Berkeley – The Earned Income Tax Credit: A Key Policy to Support Families Facing Wage Stagnation – looks at the direct and indirect impact of the EITC by reviewing its benefits beyond cash value and examining…
On January 27th, 2017, tax preparation programs, the IRS, and national and community partners raised awareness of the importance of the Earned Income Tax Credit. Emphasizing the impact of the earned income tax credit (EITC) and other refundable credits on EITC Awareness Day, CLASP gives us this list of 10 Reasons to Love the EITC.