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Middlesex United Way: Protect tax credits for low-income working families

Originial Source: The Middletown Press

By Kevin Wilhelm, Special to the Press

The Earned Income Tax Credit and low-income portion of the Child Tax Credit are two of the nation’s most effective pro-work, anti-poverty policies — and research shows their impacts on the well-being of children and family’s education, financial stability and health are long-lasting.

But several critical provisions of the credits are set to expire in the near future. If Congress fails to make permanent these EITC and CTC provisions, some 50 million Americans, including 25 million children, would lose part or all of their Child Tax Credit or Earned Income Tax Credit.

In all, 16 million Americans from low- and modest-income working families — including 146,000 Connecticut residents — would fall into, or deeper into, poverty. In Connecticut, 5,000 military and veteran families, and 6,000 rural families, will lose part or all of their credits without Congressional action. Connecticut would lose $66 million, directly affecting the pockets of workers and businesses.

The Earned Income Tax Credit is a federal tax credit for low- and moderate-income working people that encourages work and offsets federal payroll and income taxes. The amount of the EITC depends on a recipient’s income, marital status, and number of children.

The credit is well-targeted: for low-income workers, the credit rises with earnings until it reaches its maximum level and then gradually phases out at higher income levels. The Child Tax Credit, worth up to $1,000 per eligible child, helps working families offset the cost of raising children.

Fortunately there may be an opportunity this year to make these provisions permanent. United Way Worldwide is launching a month-long campaign to save EITC and CTC. We are going to stand up for working families and communities, and we want you to be part of it.

The primary policy goal of the campaign is to save the current version of the EITC and CTC by making key provisions permanent before they expire in 2017. While 2017 may seem far off, important advocacy needs to occur now to both lay the groundwork in support of the credits as well as to take advantage of any windows of opportunity to make the improvements permanent in 2015 or 2016.

In many respects, our best chances may come this fall as part of a package deal.

The United Way network has been advocating for the EITC and CTC as a top policy priority for years, and more than 380 United Ways around the country — including Middlesex United Way — are helping people connect to the refundable credits through the Volunteer Income Tax Assistance program.

Here’s what you can do to help:

Ask Congress to make EITC and CTC permanent.

Share your story and let us know why you believe EITC and CTC works.

Ask your friends to join so they can be part of this movement, too.

For more information, contact our office and we can send an easy-to-use link that will generate an email to your representatives. To learn more, reach us at info@middlesexunitedway.org.

Kevin Wilhelm is executive director of Middlesex United Way.