EITC expansion would help 200,000 Alabamians

Arise Citizens’ Policy Project executive director Kimble Forrister issued the following statement Wednesday, March 5, 2014, on President Obama’s proposal to expand the Earned Income Tax Credit:

“Reducing poverty and boosting the economy without adding a dime to the deficit is a great idea, and that’s just what President Obama’s budget would do. The president’s plan to make major improvements to the Earned Income Tax Credit would help 200,000 Alabamians next year. This idea would encourage work while reducing income inequality.

“The EITC and the Child Tax Credit are powerful anti-poverty tools for families with children. These two credits lifted 166,000 Alabamians, including 90,000 children, out of poverty each year, on average, over 2010 to 2012. Raising the maximum EITC for childless workers and expanding eligibility for young workers between the ages of 21 and 25 would provide a greater incentive to work and help them gain a foothold in the economy.

“The president’s plan also would help tens of millions of low-income working families by making permanent the 2009 improvements to the EITC and CTC. These improvements have made more families eligible and increased the credit for many others. More than 287,000 families in Alabama benefited from these improvements last year, and they’ve lifted 25,600 Alabamians out of poverty each year, on average, over 2009 to 2012.

“The EITC rewards employment among parents, and studies show it helps their children do better in school. It also helps our economy by letting workers keep more of what they earn and spend those dollars right here in Alabama. President Obama’s proposal would build on this record of success.”

To learn more about the effects of the EITC and CTC in Alabama, check out this fact sheet from the Center on Budget and Policy Priorities.

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