Issue Spotlight: Two Critical Tax Credits for Working Families in Jeopardy
Congress may soon act on a long-term deficit reduction plan that could mean deep cuts to tax credits for working families — including the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). The budget passed by the U.S. House in March 2013 would let improvements to the EITC and CTC enacted in 2009 expire and requires billions in new spending cuts that Congress would likely take from the refundable portion of the tax credits.
With Mother’s Day this Sunday, new research shows that 670,000 working moms in Pennsylvania rely on the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). The last thing Congress should do is weaken the improvements made to both tax credits in 2009.
As the deadline for filing state and federal tax returns approaches, we have put together the following resources to help you understand what your tax dollars support. We also highlight reports and educational materials on closing tax loopholes and improving overall tax fairness.
The Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) help working families make ends meet by both rewarding work and recognizing the additional expenses of raising children. View fact sheets detailing the benefits of these tax credits by Pennsylvania Congressional District.
After making deep cuts to schools, early childhood education, and health and human services, Pennsylvania lawmakers are now considering new tax breaks that will largely benefit a small number of higher-income earners.
"Today the House has taken the unprecedented step of passing a bill that creates a costly new program outside of the budget process," PBPC Director Sharon Ward said in a statement today. "House Bill 2626 would provide profitable corporations a new tax credit just for filling a vacant position, without creating any new jobs."