President Obama’s annual budget, released earlier this month, includes a rare win for childless workers: an expansion of the Earned Income Tax Credit (EITC).
In its current form, the EITC provides a huge boost in income for workers with children but only a small amount for those without. Plus workers under age 25 or over age 64 do not qualify unless they have children.
Obama’s budget would address both of these problems by doubling the credit amount and reducing the age restrictions so everyone aged 21 to 67 would be eligible.
About 40% of the clients at the Just Harvest tax sites are workers without children, many of whom could benefit from this change. With an average annual income of about $13,000, all of our tax clients can use a boost from the EITC to help meet their daily expenses and make ends meet.
The President pays for this increase by closing very unfair tax loopholes for certain investors, hedge fund managers and other professionals with very high incomes.
An expansion of the EITC for childless workers would be a small reduction in income inequality, but an important step that Just Harvest will be advocating for this year.
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