A Note from the Coordinator |
|
Dear EITC Funders Network, |
|
This is an incredibly exciting time in the field of tax policy. The American Rescue Plan Act signed by President Biden earlier this year has presented us with new opportunities to "get cash into people's pockets" and reduce poverty for millions of families across the country.
Over the past year, momentum for EITC expansions has grown both federally and in the states. Our funder and field partners are currently expressing a sense of urgency and encouraging our peers not to "miss the moment" that we find ourselves in at this time. Successful implementation of the tax provisions in the ARPA will take an "all hands on deck" approach. We stand ready to share strategies, resources and connections with you.
We have started a Google Group for funders interested in sharing news, strategies and resources related to implementation of the ARPA. You can send a request to join the group by your information to this form.
We are thrilled to see that funders are strategizing, partnering, developing plans and adjusting their grantmaking to support and maximize the impact of these expansions. All of us have a critical part to play in this ecosystem. For example, the Richmond Memorial Health Foundation has identified the intersections with their mission and begun supporting work around the EITC. You can learn more about their work in the Interview With A Funder section of this newsletter.
The recent expansions and the opportunities in front of us are the result of the hard work and advocacy done by many of you and our field partners doing this work on the ground everyday. Thank you for your continued commitment to expanding access to the EITC across the country and for your membership in the EITC Funders Network. We look forward to continued partnership with you.
Sincerely,
Ami & Deneisha
EITC Funders Network
|
|
We have just learned from the White House that the CTC Portal and website will go live on, Monday, June 14th. The website www.childtaxcredit.gov will also go live and offer information, resources and FAQs. Be sure to check it out and share this information with your network.
|
Our New ARPA Resources Page
The American Rescue Plan Act has many components and moving parts. We have created a page of curated information specific to the EITC & CTC on our website. A list of strategies funders and field partners are taking related to implementation can also be found on the page.
Take a look at it here and share it widely.
|
Click on the image or here to view a recording of the video
|
|
|
Interview with a Field Leader |
|
|
|
RMHF works explicitly to foster an equitable and healthy Richmond region through grant making, research, convenings, and impact investing.
|
|
Mark Constantine
President & CEO
The Richmond Memorial Health Foundation has working to advance equity in healthcare for many years. They are currently entering a new body of work related to tax policy. We are thrilled that Mark Constantine has agreed to share more about the connection between their work as a health funder and the EITC for this edition of Interview with a Funder.
|
|
Question #1
As a health funder, why is Richmond Memorial Health interested in tax credits? How does it advance your mission?
This work has been part of a steady walk for RMHF since 2015. Our Trustees had a retreat that year where they talked about the social determinants of health and thinking beyond healthcare. Then in 2016-2017, the Foundation identified 18 Equity + Health Fellows charged with the task of charting our strategies and goals as we work to advance health and racial equity in the Richmond region. The Fellows lifted up the critical importance of investing in policy and advocacy. Medicaid expansion in Virginia provided a real-time lived opportunity to make investments in policy and advocacy organizations. Commonwealth Institute was a partner as a valued and respected statewide anchor institution. We saw the success of Medicaid expansion and building the partnership with Commonwealth which encouraged us to keep going.
|
|
|
|
News, Research & Resources from the Field |
|
Article: Biden's Plan to Slash Child Poverty Depends on Whether the IRS Can Find Those Who Need the Cash Most
"President Joe Biden's ambitious plan to send families with kids thousands more dollars starting in July could slash child poverty in half -- but only if the federal government can successfully deliver the money to all eligible households."
Read the full article here
|
|
Report: Congress Should Adopt American Families Plan’s Permanent Expansions of Child Tax Credit and EITC, Make Additional Provisions Permanent
|
"Key tax credit provisions in President Biden’s American Families Plan would provide significant help to all but the highest-income families with children and to low-paid working adults without children. The plan would extend through 2025 the American Rescue Plan Act’s Child Tax Credit expansion and make permanent the Act’s provision making the full credit available to children whose parents have low or no earnings. It would also make permanent the Act’s expansion of the Earned Income Tax Credit (EITC) for adults not raising children. Congress should adopt these proposed changes, which would result in reductions of child poverty and provide income support for millions of people. And it should go two steps further..."
Read the full report here
|
|
Blog Post: An EITC to Lift Up Young Workers |
|
"The federal Earned Income Tax Credit (EITC), for example, is a glowing success story. It lifted 5.8 million people out of poverty in 2018, including 3 million children. But a key shortcoming of the federal EITC: working adults without children in the home receive little to no benefit."
Read the full blog post here
|
|
"The American Rescue Plan (ARP) Act of 2021 increased the federal earned income tax credit (EITC) and child tax credit (CTC). In turn, 28 states and the District of Columbia will see increases in their state EITCs because of existing linkages between federal and state tax codes. We estimate that 4.6 million households will see an average state EITC increase of $153."
|
|
Fact Sheet: Permanently Expanded Refundable Tax Credits Will Support an Equitable Economic Recovery
|
"Even before the pandemic, many women struggled to make ends meet. But the COVID-19 health and economic crisis has exposed and exacerbated the deep racial and gender inequities in our economy. While the American Rescue Plan Act of 2021 provided targeted and robust relief that addresses immediate needs, the impacts of the COVID recession on women and their families will be long-lasting...
Additional, significant and sustained public investments are needed to address the underlying flaws in our economy—and ensure an economy that works for everyone going forward. "
View the full fact sheet here
|
|
Policy Brief: Now Is the Time To Permanently Expand the Child Tax Credit and Earned Income Tax Credit |
|
|
"For decades, the American economic system and other institutions meant to support economic mobility have largely failed the tens of millions of people in the country who experience poverty every year—and the U.S. tax code is no exception. Many aspects of the current tax code perpetuate structural sexism and racism, and even provisions intended to support low-income people and families exclude the poorest and most vulnerable. However, the Biden administration’s American Rescue Plan, the $1.9 trillion stimulus package centered on broad emergency relief in response to the coronavirus pandemic, makes important temporary changes to the child tax credit (CTC) and earned income tax credit (EITC) that begin to solve this problem. But in order for those changes to have a long-term impact and better support families with children and low-wage workers, they must be made permanent."
|
|
State & Local Innovations |
|
Iowa Legislature Sends Wide-Ranging Tax Plan To Governor's Desk
Last month, the Iowa legislature sent a bill to the Governor's desk that would expand eligibility for child care tax credits from families earning maximum $45,000 to those earning maximum $90,000. Read more about it here.
Expansion Success in Missouri
Last month in Missouri, state lawmakers passed legislation last week to create an Earned Income Tax Credit (EITC) worth 10% of the federal credit, also known as the Missouri Working Families Tax Credit.
The Missouri Budget Project (MBP) estimates that the credit will benefit 250,000 families and provide much-needed tax relief. The credit will initially be worth 10% of the federal credit but will expand to 20% of the federal credit if state revenues increase by $150 million.
A Win for Families in New Mexico
New Mexico’s Gov. Michelle Lujan Grisham signed a bill significantly expanding the state’s Working Family Tax Credit last week. The legislation expands eligibility for the credit to taxpayers over 18 and who use Individual Taxpayer Identification Numbers (ITINs), and beginning in 2023 the credit will be worth 25% of the federal Earned Income Tax Credit (EITC). Read the Press Release here.
Oklahoma Restores EITC Refundability
In May, Oklahoma Gov. Kevin Stitt (R) signed legislation into law that will restore the state EITC’s refundability. Learn more here.
EITC Comes to Washington & Includes ITINs
Washington Governor Jay Inslee (D) signed legislation to enact a state Earned Income Tax Credit (EITC), also known as the Working Families Tax Credit or Recovery Rebate. The Washington State Budget & Policy Center (Budget & Policy Center) estimates that the rebate will benefit 420,000 households throughout the state.
The credit will offer an annual cash rebate ranging from $300 to $1,200 depending on household size and income level. Additionally, the legislation offers eligibility to filers using Individual Taxpayer Identification Numbers (ITINs), a group that is excluded from claiming the federal EITC and most state-level credits. Learn more here.
Congratulations to all of the people who contributed to these wins!
|
|
Upcoming Field Events, Resources & Announcements |
|
First enhanced child tax credit payments to go out July 15
Click here to learn more!
|
|
The Impact of the EITC on Health Outcomes Roadshow
The EITC has substantial, positive impacts on health outcomes. The EITC Funders Network is working to build connections between EITC and health funders.
Are you interested in learning more about how the EITC impacts health outcomes and the work of economic security and health funders to build strong outreach and engagement programs?
You can now request an EITC FN Roadshow. Invite your guests and let us put together a presentation for you! For more information, contact Ami Nagle at anagle@eitcfunders.org.
|
|
|
|
Take a Look at Our Predatory Practices Page
Predatory Practices often take advantage of poor people and perpetuate cycles of poverty. We have launched a new page on our website to share information and resources.
Take a look at it here and share it widely.
|
|
Join Our ARPA Google Group!
We have started a Google Group for funders interested in sharing news, strategies and resources related to implementation of the ARPA. You can send a request to join the group by your information to this form.
|
|
About the EITC Funders Network
|
|
The EITC Funders Network brings together funders interested in the Earned Income Tax Credit, free- and low-cost tax preparation, and asset building. The Network seeks to increase awareness of EITC-related projects, foster collaboration, share information about the current status of EITC-related work, and help shape the future of the field.
The EITC Funders Network is generously funded by:
The Piton Foundation
The W.K. Kellogg Foundation
Anonymous
|
|
|
|
|
|
|
