Economic Stability & Growth
Better economic policy choices can ensure that all low-wage, adult workers in the United States can meet their basic needs and find a path to a better future.
jurisdictions, 29 states, and the District of Columbia have state EITCs
- 9 million
women of color had their incomes boosted by the federal EITC in 2019
Americans have been lifted above the poverty line by the federal EITC and CTC
Policies that work for working families
Research indicates that the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) successfully boost earnings for low-wage workers, while generating substantial benefits in the areas of health, education, and quality of life. Combined, EITC and CTC have lifted more Americans out of poverty than any other program except Social Security.
We are building the case for evidence-based policies and pragmatic solutions that address rapidly changing needs of the workforce – advancing solutions that work for America’s workers.
Impact in Action at the State Level
Twenty-nine states and DC currently have state EITCs.
The Foundation piloted EITC/CTC education and outreach programs in California and Maine. Early results indicate that three million households are expected to be recipients of the California EITC for the 2019 tax year, a 50 percent increase from the two million that claimed the credit during the previous year, and an estimated 102,000 households will benefit from the Maine EITC, which is up by nearly 20 percent from 2018.
At the state level, the Foundation will reach more than 4.6 million people by replicating this effort in at least eight states. In addition to California and Maine, work is already underway in four more states: Illinois, Missouri, New Jersey, and Washington.
In order to extend the outreach into all 50 states, the District of Columbia, and Puerto Rico and also raise awareness about the impact of the federal EITC/CTC, the Foundation also works with several national organizations. If improvements were made alongside the doubling of the credits at the federal level, it would provide $134 billion in tax relief for 67 million people in five years.
To achieve our policy goals, we’re applying an integrated strategy that includes:
Investing in the capacity of policy organizations and coalitions that seek to improve economic stability for workers at both the state and national levels
Promoting the use of data to inform legislation and measure impact
Leveraging tech-enabled innovation designed for the end-user to increase access, improve quality, and yield better outcomes
Investing in social and behavioral science to understand how policies can lead to economic stability
It is about a level playing field. It is about giving folks the tools that they need to not just stay above water, but to actually build something for the long term for themselves and the next generation.
Raising awareness about the impact of expanding and modernizing proven economic policies like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).
workers reached at the state and local levels
working families impacted at the federal level
doubling the current credits will make $134 billion available to America’s workers
Meet our Partners & Grantees
A state Earned Income Tax Credit is a bottom-up tax cut that builds the middle class, spurs local economic growth, and provides long-term benefits to families and communities.
Washington is a state without an income tax, so the very idea that we are trying to have an earned income tax credit in our state without an income tax is pretty innovative.
Expansion of Illinois’ Earned Income Tax Credit would help break cycles of poverty in the City of Chicago and across the state. Our coalition stands strong and committed to making sure our workers in Illinois have greater economic security.
Proposals to extend the EITC to childless workers would reward the hard work of a broad swath of people in every state – young and older, across all genders and races – who do important low-paid jobs in hospitals, schools, office buildings, and construction sites.
Danielle Goonan on Economic Policies that Work
The Earned Income Tax Credit (#EITC) has been one of the most impactful anti-poverty tools in US history. We’re creating #ImpactThroughInnovation by identifying and scaling up bipartisan solutions for America’s working families.More