As the holiday season approaches, Congress is negotiating a new tax deal before members head home to their states and districts.
They are contemplating billions of dollars in tax breaks for businesses, but they must prioritize hardworking low-income young adults and families. The Earned Income Tax Credit and Child Tax Credit are pro-work tax credits for low- and moderate-income workers. However, key provisions of the two tax credits are temporary, and policymakers must act now to ensure that 37,000 families in Maine continue to receive essential benefits. If key provisions expire, 34,000 Mainers, including 16,000 children, will be pushed into, or deeper into, poverty.
Lawmakers should use this opportunity to address a glaring hole in the Earned Income Tax Credit that affects millions of workers, including young workers like many of my peers. Under current federal tax policy, low-income adults without children, including noncustodial parents, are the only workers taxed into, or deeper into, poverty. In 2012, federal income and payroll taxes pushed 1.2 million childless workers into poverty and another 5.8 million deeper into poverty.
Paul Ryan, the new Republican speaker of the House, and President Barack Obama agree that the age of eligibility for the Earned Income Tax Credit should be lowered from 25 to 21 and the maximum credit should be increased. If Congress closes this gap, 13.5 million childless workers nationwide, including 64,000 young adults in Maine, would become eligible for the credit or receive a larger one.
Evidence demonstrates that the Earned Income Tax Credit boosts employment, increases financial stability and strengthens the economy, putting $206 million into Maine’s economy in 2012. Congress must act now to save key provisions of these tax credits and expand the Earned Income Tax Credit for childless adults. Our delegation should be champions for this cause.
Susan Fleurant
Waterville
Send questions/comments to the editors.
