Blog

At CSSP we are committed to ensuring that programs and policies are crafted in a way that best meet the needs of low-income people. Two populations that are particularly important to us are youth transitioning from foster care and young parents. We believe that public policy must help provide opportunities for these individuals to be successful and to thrive.

One program that can help is the Earned Income Tax Credit (EITC). The EITC is an effective program supporting low and moderate income families by helping reduce the amount of tax owed and providing a refund. Research proves it helps lift millions from poverty each year.

A new CSSP brief, "Expanding the Earned Income Tax Credit to Childless Adults," outlines the ways expanding the EITC to younger adults and noncustodial parents can help offer low-income, young adults with an additional support to ensure economic stability. This establishes an important foundation not just for young people leaving foster care and for young parents - but also for young people who will soon be parents. Increasing the amount provided through the tax credit and expanding the eligibility to younger adults and noncustodial parents would both reduce poverty and be good for children.

In fact, children in families that receive the EITC have improved infant health, higher school-age academic achievement and increased college enrollment rates. For every $3,000 a year in additional parental income per child under age 6 that a low-income family receives, research shows there is an increase in the child's future working hours by 135 hours a year between ages 25 and 37, and their annual earnings rise by 17 percent.

To make the EITC even more effective in reducing poverty the details matter. This brief outlines three plans (two federal and one state) and assesses the specifics of each proposal and provides recommendations for improving policies to support low-income people and their families.