Tuesday, March 18, 2014

OBAMA PROPOSAL COULD ENDANGER MILLIONS OF EARNED INCOME TAX CREDITS FOR PUERTO RICANS

"Puerto Rico would lose millions in earned income tax credits (EITC) if the Obama proposal to expand EITC to adults without children becomes a reality.
Pierluisi should stop pretending that EITC is possible without incorporating Puerto Rico into the federal tax code."  Mj

THE BROOKINGS INSTITUTION

EITC Expansion Would Strengthen Credit for Childless Workers
By: Elizabeth Kneebone and Jane R. Williams
March 18, 2014

For low-income working families, the Earned Income Tax Credit (EITC) is one of the nation’s most effective tools for reducing inequality and alleviating poverty. However, as President Obama pointed out in his State of the Union address, “It doesn’t do enough for…workers who don’t have kids.” In fact, given the modest provision for childless workers (which begins to phase out at just 55 percent of full-time, minimum wage earnings), a childless worker making poverty-level wages would actually be taxed into poverty under current tax law.

Both President Obama’s recent proposal to expand the EITC and similar proposals from the House and Senate would significantly strengthen the credit for workers without children. The Administration’s proposal would benefit 14.1 million taxpayers, while the Congressional proposals would impact more than 15 million

EITC Expansion in the Nation's 100 Largest Metro Areas