ERIC Number: ED444714
Record Type: Non-Journal
Publication Date: 2000-May
Reference Count: N/A
Where Credit's Due: What a State Earned Income Credit Means for California's Children.
Children Now, Oakland, CA.
Although California has the world's seventh largest economy, the state has one of the nation's highest childhood poverty rates and one of the worst income inequality gaps. This report advocates the use of a state earned income credit (EIC) for low-income working families to reward work and to offset the payroll and sales taxes that disproportionately burden low-income workers. The report argues that with a budget surplus of at least five billion dollars for the current year (2000-2001) and the prediction of a continued strong economy, California has more than sufficient resources to establish a state EIC. Further, the report maintains that since the majority of poor children have a parent who works, the EIC is an effective strategy to help working parents provide the basics for their children. The report describes the establishment of the federal EIC and how it works for families, discusses the persistence of child poverty in California, outlines the establishment of state EIC in 12 other states, and delineates by county the percent of California tax filers receiving the federal EIC for the tax year 1997. The report concludes by asserting that the need for long-term policies that support working families remains compelling in California and that the passage of a state EIC would affirm values of individual responsibility and fairness, while investing in children's future through their working parents. (KB)
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: Children Now, Oakland, CA.
Identifiers - Location: California
Identifiers - Laws, Policies, & Programs: Earned Income Tax Credit