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

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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 Massachusetts. 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 Vermont, Connecticut and New York - 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 .

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