Support an Increase in the Earned Income Tax Credit (EITC)

What is the EITC?  The state Earned Income Tax Credit (EITC) is a refundable tax credit provided by the Commonwealth to working families, primarily those with children, in order to reward work and help them make ends meet and provide for their children.  In 2013 the tax credit benefited 74,000 children in .  Studies have repeatedly shown that the EITC has positive benefits in terms of housing security, food security, economic mobility, and even children's school performance.

Governor Baker and a number of legislators have filed bills that would increase the state’s EITC from its current level of 15% to 30% or 50% of the federal EITC level.

The EITC is effective in reducing poverty The Earned Income Tax Credit leads to a variety of benefits for parents and children, according to a large body of research, and is widely recognized as an extremely important tool in the fight against poverty. Specifically, the EITC:  Rewards work by allowing families to keep more of what they earn;  Improves the health of children and mothers;  Boosts academic performance;  Increases the earning potential for future generations; and  Increases Social Security benefits.

A stronger state EITC would help hundreds of thousands of Massachusetts families In 2014, our members helped 5,208 families claim $2,993,254 in EITC benefits. We have seen first-hand the impact this program has on Massachusetts families. Recognizing the benefits of a strong state EITC, at least ten other states offer significantly larger credits than does Massachusetts. Several of our neighboring states - including , and - all offer significantly larger credits than Massachusetts does.

MACDC urges the Massachusetts legislature to increase the Earned Income Tax Credit this year.

For more information, contact David Bryant at [email protected] or 617-379-5927

Rev. 4-16-15