PolicyForResults.org - Expand Tax Relief for Low-Wage Working Families

Expand Tax Relief for Low-Wage Working Families

To help families move out of poverty and provide a brighter future for their children, low-wage workers need to retain more of their earnings. Tax policies at that state and federal level can help or hurt low-income families, by taking away their limited financial resources or by helping them keep more of their earnings.

What Can Policymakers Do?

Raise Income tax thresholds. These thresholds determine the portion of income that is earned prior to taxation. States can raise these thresholds to reduce the tax burden for all families, particularly low-wage families.
Expand Access to the Earned Income Tax Credit (EITC). Considered one of the most effective anti-poverty program in history, this is a federal tax credit that can be enhanced with a state version of the credit and state outreach efforts.
Promote the Child and Dependent Care Credit (CADC). Child care expenses are can prohibit a family from working its way out of poverty. States can assist working families through the CADC.

Expand Economic Opportunity and Reduce Child Poverty

Expand Tax Relief for Low-Wage Working Families