In April, Sens. Brown, Bennet, Durbin & Wyden Led 46 Democrats in Introducing Legislation to Boost Child and Earned Income Tax Credits
WASHINGTON, DC – In case you missed it, yesterday, U.S. Congressman Dan Kildee (MI-05), introduced the House companion bill to the Senate Working Families Tax Relief Act. The bill was first introduced by U.S. Senators Sherrod Brown (D-OH), Michael Bennet (D-CO), Dick Durbin (D-IL) and Ron Wyden (D-OR), who led 46 Senate Democrats to introduce this legislation in April. More than 80 national and local organizations have thrown their support behind the bill.
At a time when wages are stagnant and the cost of childcare has exploded, the Working Families Tax Relief Act would cut taxes for workers and families by expanding the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). EITC and CTC are two of the most effective tools we have to put money in the pockets of working people and pull children out of poverty. Expanding them will give millions more Americans a foothold in the middle class.
Meanwhile, Americans are seeing President Trump’s and the Congressional Republicans’ 2017 tax bill for what it really is – a handout to millionaires and billionaires at the expense of working families. The Working Families Tax Relief Act would cut taxes for workers and families left behind by the President’s tax law.
These tax cuts would benefit 4 million Ohioans, including 1.7 million children in the state. The bill also allows workers to draw a $500 advance payment on their EITC so that families aren’t forced to turn to predatory payday lenders when the car breaks down or other unexpected expenses come up. Payday loans are generally made to individuals who are working and often eligible for the EITC. The average payday loan is about $375.
“All across the country, families are working harder than ever but have less and less to show for it. Corporate profits have soared, executive compensation has exploded, but wages are flat. Meanwhile the cost of everything from healthcare to education and housing is up,” said Senator Brown. “Our bill would help put more money back in the pockets of working families and set children up for future success. I thank Rep. Kildee for his hard work on this. I’m honored to have him as our House partner in this effort.”
“Michiganders are working harder than ever but still struggling to make ends meet. Americans deserve a tax code that puts working families first. I am proud to introduce this legislation to help put money back in the pockets of working people and families raising children. Expanding the Earned Income Tax Credit and Child Tax Credit will help millions of American families get a foothold in the middle class,” said Congressman Kildee.
The Working Families Tax Relief Act would:
- Boost the incomes of 46 million households and 114 million people, including 43 million children.
- Lift 7 million people out of poverty, including 3 million children.
- Expand the EITC for families with children by roughly 25 percent.
- Allow workers to draw a $500 advance payment on their EITC so that families aren’t forced to turn to predatory payday lenders when the car breaks down or other unexpected expenses come up. The average payday loan is about $375.
- Significantly expand the EITC for workers without children and make the credit available for people starting at age 19 up to age 67. Currently, workers without children can be pulled under the poverty line by taxes. Expanding the EITC would fix that.
- Make the CTC fully refundable, so the more than 26 million children who were left out of the Trump tax law get the support they deserve.
- Create a Young Child Tax Credit to provide extra support to children five and under, when research says they need it most.
Read more about the bill HERE.