The Working Families Tax Relief Act hopes to expand access to and increase the value of the EITC and CTC so workers can’t be taxed into poverty.
“No one who is working full time should have to worry about falling into poverty. The Working Families Tax Relief Act will provide commonsense updates to the tax code to support working families and help ensure they can provide for their families and contribute to our economy,” said Senator Shaheen.
According to a release from Shaheen’s office, workers who don’t claim children are the only group that can be taxed into poverty by the federal tax system.
The proposed legislation will lower the age to qualify for EITC to 21 from 25 and increases the size of the credit for childless workers. It will also increase the amount of credit available for families with children under six and index the CTC.
Additionally, the bill includes measures to simplify and clarify who can claim a child, a bipartisan effort originally proposed by the George W. Bush Administration.
“Ensuring that all Granite Staters have the support they need to get ahead and stay ahead is critical to the strength of our communities and our state’s economic well-being,” said Senator Hassan.
“By expanding access to and enhancing the value of the Earned Income Tax Credit and the Child Tax Credit, this bill is a commonsense step to expand middle-class opportunity and give tax relief to hard-working Granite Staters,” Hassan continued.
In 2015, the CTC lifted 1.6 million children out of poverty, according to Senator Shaheen’s office.