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The Earned Income Tax Credit: Expand It. A Lot

by Patriotic Millionaires | Updated on 5.17.18

More from the experts at Prosperity Now & Center for Budget & Policy Priorities:

What is the Earned Income Tax Credit (EITC)? The federal EITC is a refundable tax credit for low- to moderate-income working individuals and couples with children. The amount of EITC benefit depends on a recipient’s income and number of children.

Take action above to contact your elected officials and tell them to support the Brown-Khanna proposal and to expand and improve the EITC.

In 2016, 27 million tax filers claimed the EITC, receiving an average benefit of $2,454. A married couple with two children and an income of $40,000 for the year qualified for an EITC of $2,142 - meaning their EITC benefit was the equivalent of 5% of their annual income.

What did the GOP tax bill do the EITC? The GOP bill ignored the EITC completely, preferring to send tax breaks to millionaires and wealthy corporations over low-income families. Despite this, GOP members such as Speaker Paul Ryan have spoken to the benefit of expanding the EITC, specifically of expanding it to childless workers. Their support for its expansion has, however, often come linked to cuts to other benefits for low-income families.

What should we do about the EITC? The EITC should be expanded, and expanded to childless workers, without cuts to other low-income programs. Currently the federal tax code taxes 7.5 million childless adults further into poverty because they are not eligible for the full EITC.

A great start is newly introduced legislation from Senator Sherrod Brown and Representative Ro Khanna that would expand EITC for all types of working individuals. The bill would improve and expand EITC, resulting in a direct raise for 47 million individuals - including for childless workers.

To read more about what EITC is, read the report from Prosperity Now.

To read more about the Brown-Khanna Proposal, read the report on it from the Center on Budget & Policy Priorities.

Take action above to contact your elected officials and tell them to support the Brown-Khanna proposal and to expand and improve EITC!

Patriotic Millionaires

Written by Patriotic Millionaires

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  • LovelyLady

    Well I dont understand why they would give it to someone who doesn't need it?? The wealthy are already rich they don't need it. I care more about giving it to those who really physically work each day. I think is a great idea to share what the can with the childless tax payers. Thats is a great idea.

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  • Peg

    This is an excellent tool for expanding assets of our lowest income earners while encouraging work.

    Like (1)