House Bill’s Increase in Child Tax Credit Excludes Many Children in Working Families

Tuesday, November 14, 2017 at 11:05 AM by

Congressional leaders misleadingly argue that their tax cut plan would benefit working families because it increases the maximum value of the federal Child Tax Credit (CTC). However, that part of the House bill completely excludes 159,000 children in Wisconsin whose parents work in low-paying jobs, according to a new analysis.

House leaders intend to hold a floor vote on their tax plan this week. The Senate tax plan is likely to be voted on after Thanksgiving.

About one in three Wisconsin children in working families would either be excluded entirely or only partially benefit from the proposed increase in the CTC, according new report from the Washington, DC-based Center on Budget and Policy Priorities.  Read more

Categories: Blog, FEDERAL BUDGET & TAXES, federal issues, refundable tax credits, taxes | Comments Off on House Bill’s Increase in Child Tax Credit Excludes Many Children in Working Families

Speaker Ryan Would Exacerbate a Problem that He Says Is a Concern

Thursday, August 31, 2017 at 12:56 PM by
Several important public benefit programs provide strong incentives to work, but you wouldn’t know that when you listen to Speaker Paul Ryan talk about those programs. He has been using half-truths to create a very distorted impression of public benefits, as he seeks to advance an agenda that would further shift federal tax and budget policy in favor of the very wealthy, at the expense of low-income households.
Categories: Blog, EITC, federal issues, Medicaid, refundable tax credits, taxes | Comments Off on Speaker Ryan Would Exacerbate a Problem that He Says Is a Concern

Critics Use Wrong Yardstick to Measure Safety Net’s Success

Thursday, August 4, 2016 at 9:15 AM by
Speaker Ryan and other conservatives are calling for sweeping changes that would seriously weaken safety net programs, and a core argument for those changes is way off the mark. By using a measure that excludes most of the government’s poverty-reduction investments, he sets back the public discourse about the effectiveness of current programs.
Categories: Blog, ECONOMIC SECURITY, EITC, FEDERAL BUDGET & TAXES, food stamps, In Focus Fed Budget Tax, poverty, refundable tax credits, TANF | Comments Off on Critics Use Wrong Yardstick to Measure Safety Net’s Success

A Bipartisan Option for Promoting Work & Reducing Inequality

Thursday, April 21, 2016 at 3:46 PM by

An Increased EITC for Childless Adults Would Reduce Poverty and Enjoys Bipartisan Support

Income inequality has been on the minds of many voters during the presidential primaries. If you think it’s only a concern of Democrats, take a look at the results of the most recent “Wisconsin Survey” – a St. Norbert’s poll conducted for Wisconsin Public Radio and Wisconsin Public Television. The survey last week of 616 registered Wisconsin voters found that 66% favor “increasing taxes on wealthy Americans and large corporations in order to help reduce income inequality in the U.S.,” compared to only 28% who said they were opposed.

There are lots of different ways to adjust taxes (and labor policy) to reduce income inequality. Unfortunately, most of those – such as closing corporate tax loopholes and increasing the minimum wage – have little chance in Congress right now.  But one promising policy option that does have a chance is to provide a significant increase in the Earned Income Tax Credit (EITC) for adults who don’t have dependent children. Read more

Categories: Blog, EITC, federal issues, income inequality, income taxes, poverty, refundable tax credits, taxes | Comments Off on A Bipartisan Option for Promoting Work & Reducing Inequality

Working Families across Wisconsin Stand to Lose Tax Credits, if Congress does not take Action

Tuesday, December 1, 2015 at 11:06 AM by

Wisconsin families all across the state will have a harder time making ends meet if Congress does not take action to protect improvements to two important federal tax credits, according to a new analysis from the Wisconsin Budget Project.

More than 150,000 working families in Wisconsin and 301,000 children will be harmed if federal policymakers fail to save key provisions of the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) that are set to expire at the end of 2017. These families will lose an average of $1,100 per year they could use to make investments that help them keep working and improve the economic security of their family, such as paying for car repairs or saving for their children’s college educations.

Lawmakers have an opportunity in the next few weeks to make the improvements permanent. Several temporary corporate tax provisions are expiring soon, and advocates for working families believe that if the businesses tax breaks are made permanent, improvements to tax credits for struggling working families should also be made permanent in the same legislation. Read more

Categories: Blog, ECONOMIC SECURITY, FEDERAL BUDGET & TAXES, refundable tax credits | Comments Off on Working Families across Wisconsin Stand to Lose Tax Credits, if Congress does not take Action

Tax Credits that Help Veteran and Military Families are At Risk

Tuesday, November 10, 2015 at 7:29 AM by

Pro-work tax credits give a boost to thousands of veteran and military households in Wisconsin, but nearly half of those families will lose part or all of their tax credits unless Congress takes action.

Key provisions of the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), both of which help families with low incomes make ends meet, are set to expire at the end of 2017. These federal credits encourage work, help children do better in school, improve the health of children and families, and strengthen the future workforce.

In Wisconsin, hundreds of thousands of households – including 36,000 veteran and military households – benefit from the EITC or the part of the CTC that benefits families with low incomes. However, 17,000 of the veteran and military families that benefit will lose part or all of their tax credits if Congress doesn’t act to protect improvements to those credits. Read more

Categories: Blog, FEDERAL BUDGET & TAXES, refundable tax credits | Comments Off on Tax Credits that Help Veteran and Military Families are At Risk

Congress Should Make Improvements to Working Families’ Tax Credits Permanent

Monday, September 28, 2015 at 1:26 AM by

Congress has a chance this fall to save key provisions of the federal Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), two proven pro-work strategies that help working families make ends meet and provide the basics for their children.

If Congress does not act, 158,000 Wisconsin families with 301,000 children will lose some or all of their working-family tax credits, according to a new analysis by the Wisconsin Budget Project.

EITC

There is an effort underway in Congress to make several temporary corporate tax provisions permanent, and the debate is expected to come to a head this fall. Some federal lawmakers have advocated for letting these corporate provisions leap-frog over tax credits for working families instead of putting top priority this fall on saving key provisions of the federal EITC and CTC.  Something similar happened during the last major tax debate, when these EITC and CTC provisions were only extended through 2017 but estate tax changes for wealthy families were made permanent. Read more

Categories: Blog, ECONOMIC SECURITY, FEDERAL BUDGET & TAXES, refundable tax credits | Comments Off on Congress Should Make Improvements to Working Families’ Tax Credits Permanent

Paul Ryan’s New Poverty Plan Focuses on Opportunity, but Comes up Short

Tuesday, July 29, 2014 at 4:09 PM by
Federal anti-poverty programs come under a magnifying glass in Ryan's new proposal

Federal anti-poverty programs come under a magnifying glass in Ryan’s new proposal

Paul Ryan has a released a new poverty plan that advocates consolidating federal safety net programs and turning the money over to the states. It’s always worth taking a look at changes that could make anti-poverty program more effective, but Ryan’s approach would decrease opportunity for individuals living in poverty, not increase it.

Ryan frames his new proposal as aimed at giving low-income people the tools they need to make ends meet and lift themselves out of poverty. According to his proposal, Expanding Opportunity in America:

“A key tenet of the American Dream is that where you start off shouldn’t determine where you end up. If you work hard and play by the rules, you should get ahead. But the fact is, far too many people are stuck on the lower rungs…There are many factors beyond public policy that affect upward mobility.

Read more
Categories: Blog, ECONOMIC SECURITY, FEDERAL BUDGET & TAXES, food stamps, refundable tax credits | Comments Off on Paul Ryan’s New Poverty Plan Focuses on Opportunity, but Comes up Short

President’s Budget Would Help Make Work Pay for 252,000 Childless Wisconsinites

Wednesday, March 5, 2014 at 6:31 PM by

The FY 2015 budget proposal unveiled by the President this week addresses an issue that many politicians, researchers and commentators across the political spectrum have recently been talking about – providing assistance to low-income working adults who don’t have dependent children.  We were very pleased to see the part of his budget that would help that long-overlooked population by making more “childless” workers eligible for the federal Earned Income Tax Credit (EITC) and increasing the small credit for those who are already eligible.

The EITC encourages and rewards work, offsets federal payroll and income taxes, and boosts living standards. As the Center on Budget and Policy Priorities (CBPP) points out: “Next to Social Security, the EITC combined with the refundable portion of the CTC [child tax credit] constitutes the nation’s most powerful anti-poverty program.”  However, the federal EITC currently provides little or no benefit for adults who don’t have dependent children, and the Wisconsin EITC doesn’t apply to that population. Read more

Categories: Blog, EITC, FEDERAL BUDGET & TAXES, poverty, refundable tax credits | Comments Off on President’s Budget Would Help Make Work Pay for 252,000 Childless Wisconsinites

Get the Credit You Deserve: Tax Credit Information in English, Spanish and Hmong

Wednesday, December 11, 2013 at 8:25 AM by
Important tax credit eligibility information for Wisconsin families.
Categories: Blog, EITC, FEDERAL BUDGET & TAXES, Homestead credit, refundable tax credits, STATE TAXES | Comments Off on Get the Credit You Deserve: Tax Credit Information in English, Spanish and Hmong