Why should Georgia have a state EITC?

January 29th, 2016 by

In honor of #EITCAwarenessDay, learn how a state Earned Income Tax Credit (EITC) would positively impact our state and community.

 

How a state EITC would benefit families –

A state Earned Income Tax Credit (EITC) would provide a bottom-up tax cut that would benefit more than a million Georgia families and put an estimated $270 million back into the pockets of working Georgians.County EITC Map Branded

More specifically it would benefit:

  • An estimated 770,000 working mothers and 410,000 working
  • An estimated 80,000 military veterans and their
  • An estimated 2 million children.
  • Over a million Georgia households representing 6 million Georgians.

Georgia should create a state Earned Income Tax Credit to help Georgians with jobs afford the basics and work their way into the middle class.

  • The tax credit lets low- and moderate-income working families keep more of what they earn to help meet basic needs and pay for things that allow them to keep working, such as child care and transportation.
  • This helps families as they get a toehold in the workforce or deal with temporary setbacks like having their hours or pay reduced or a family breadwinner laid off.
  • For families with very low wages, the credit increases with each dollar earned, which encourages them to work more hours. That additional experience in the workforce can lead to higher pay and better opportunities. The tax credit phases out after recipients reach a modest income level.
  • This tax credit offers working families a hand up by encouraging and supporting work and reducing use of public assistance. It’s a modest investment that can make a big difference in the lives of working families.
  • If someone doesn’t work and pay taxes, they can’t receive this help. It only goes to people who earn income through low-wage work, most of them raising children.

How a state EITC would benefit small businesses, local economies and Georgia’s future workforce.

  • The Earned Income Tax Credit boosts local economies across the state by helping low-wage workers keep more of their income, which they spend at local businesses to buy groceries, pay for car repairs, or afford child care.
  • And businesses like this tax credit because workers who can pay for basic necessities are more dependable employees because they can better afford reliable transportation to get to work and child care for their kids.
  • The EITC is a proven tool to strengthen tomorrow’s workforce because young people receive an outsized benefit. Research finds that children and young adults in families receiving the EITC do better in school, graduate high school and attend college and succeed in the workforce.

To view full report: the case for a state Earned Income Tax Credit

Download Georgia Budget & Policy Institute’s State EITC Fact Sheet

ABOUT NATIONAL EITC AWARENESS DAY


EITC Awareness Day is a national grassroots effort to draw attention to the Earned Income Tax Credit and the enormous positive benefit it has on working families across the country.