The tax code is one of the largest tools that the federal, state, and municipal governments have to provide families with economic security and wealth-building opportunities. Yet the tax code systematically disadvantages women, people of color, immigrants and low-income families.
The EITC Funders Network, together with partner organizations, has actively engaged our members in conversations – through webinars, in-person meetings, and discussion groups – on the role of tax policy in advancing racial and gender equity. We’ve also connected with leaders in the field to create a short video series about the angles of this conversation.
Researchers are finding that the EITC provides benefits across the life cycle and into the next generation, including a powerful effect on health outcomes. As funders increasingly look to a broad framework that defines the health of communities through social, economic, and environmental factors, this growing body of research provides an opportunity for cross-sector collaborations to advance public policies that promote economic opportunity and health equity.
The EITC Funders Network, with our partners, has started exploring this space – through webinars and meetings – as an opportunity for collaboration. We have also created a resource page with links to research, advocacy reports, and funder perspectives on the intersection of tax credits and health outcomes.
The EITC refund offers a significant boost in income to many working families. Funders have been using these boosts as “teachable moments” – introducing low- and moderate-income families to banking, credit clean up, financial planning and family budgeting. In addition, the EITC can also help families save. New savings opportunities – including savings bonds and Individual Development Accounts—have been specifically designed to help families take advantage of the boost in cash during tax time and promote good financial planning and savings behaviors.
See these links for more information:
Our ARPA Information & Resources Page
Increasing awareness about and access to the EITC is critical to ensuring all eligible households benefit from the EITC. Supporting free tax preparation—often in conjunction with VITA–is a core strategy of many funders to both increase access to the EITC and reduce the negative impact of high tax-preparation fees and refund anticipation loans.
See these links for more information:
The EITC was established in 1975 as the nation’s most significant policy reform to reduce poverty and incentivize work for low income Americans. Current EITC-related policy efforts aim to maintain and expand the EITC so that it continues to benefit working families.
See these links for more information:
The Center on Budget and Policy Priorities
Tax Credits for Workers and Their Families
Learn more about how the EITC impacts the communities you care about by using this interactive tool:
The Tax Policy Center’s EITC Interactive Database provides users with access to IRS data on federal individual income tax filers. Data are available for all ZIP codes, cities, counties, metropolitan areas, states, state legislative districts, and congressional districts in the United States.