Working Families across Wisconsin Stand to Lose Tax Credits, if Congress does not take Action
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.
The amount of tax credits that families in each county risk losing range from a high of $49.3 million in Milwaukee County down to $122,000 in Florence County, according to the analysis. Examples of the amounts of tax credits that could be lost by families in other counties include:
- $8.0 million in Brown County;
- $7.0 million in Racine County;
- $4.8 million in Waukesha County;
- $4.1 million in Marathon County; and
- $2.7 million in Eau Claire County.
For the full analysis, go to “At Risk: Improvements to Working Family Tax Credits.” For more information on how the EITC and the CTC help struggling families climb into the middle class, read our September 2015 analysis, “Failure to Save Key Provisions to Tax Credits Would Harm Wisconsin Working Families.”