Expand the Rhode Island Earned Income Tax Credit
Lawmakers are meeting right now to discuss expanding the state Earned Income Tax Credit (EITC) from 15 percent to 20 percent of the federal level. The 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.
What you need to know:
- By 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.
- This proposal will provide a maximum benefit of 20 percent of the federal level.
- A state EITC would 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.
Act now and voice your support for the EITC!