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Twenty States Consider Action on the Earned Income Tax Credit

Common Sense Kids Action supports the state-based EITC policy because it helps low- and moderate-income working individuals and families.

The Earned Income Tax Credit, or EITC, is often described as one of the most effective anti-poverty tools available, because it's a refundable tax credit that flows directly to working low-income citizens. It rewards work, increases economic mobility, reduces inequality, and improves children's health.

Common Sense Kids Action supports the state-based EITC policy, because it offers a cash-back tax credit available to qualifying low- and moderate-income working individuals and families. Evidence from the federal EITC shows that it helps recipients improve their economic stability and that kids from recipient families perform better in school.

Providing tax credits to people currently in the workforce, the EITC increases employment and encourages people, especially single mothers, to work more hours. In combination with the federal Child Tax Credit (CTC), the federal EITC lifted some 10 million people above the poverty line in 2014, 5 million of them children, and raised the incomes of another 22 million people. A state EITC would also put more money in the pockets of people likely to spend it at local businesses to buy groceries or pay for child care or other basics.

20 states with EITC legislation

Connecticut, Georgia, Hawaii, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Nebraska, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, and West Virginia

Twenty states are currently considering policies that would create, expand, promote, or retract EITC benefits. Contact your legislator today in support of the EITC.

Interested in learning more about our advocacy efforts around EITC? Join our efforts -- become a Kids Action Advocate today!

Update, March 16, 2017: Maine's SP 81 was signed into law on March 16, 2017, legislation that promotes the Maine Earned Income Tax Credit (EITC) by establishing EITC Awareness Day.

JR Starrett
JR oversees Let's Invest Large in Youth (LILY), a multi state program for Common Sense Kids Action. In this capacity JR works with a team of internal and external stakeholders to identify and introduce state based legislation that will positively impact kids. Prior to joining Common Sense, JR served as a seasoned political operative managing campaign efforts for some of the nation’s most competitive races. JR was recognized as a Rising Star by Campaigns and Elections magazine in 2014. He currently lives in San Francisco with his wife Morgan. JR is a frequent contributor to Campaigns and Elections Magazine, contributing to the Campaign Insider column.