Lawmakers and Advocates Urge Governor Pritzker to Include Earned Revenue Credit Expansion in FY22 Budget – The Southland Journal

0

Advertising

Lawmakers and Advocates Urge Governor Pritzker to Include Earned Revenue Credit Expansion in FY22 Budget (Springfield, Ill.) – Legislators, advocates and community members urged Governor Pritzker to offer a tax cut to low-income Illinois in the state’s fiscal year 2022 budget, ahead of his Feb. 2 budget speech. Proponents called for the inclusion of a bill (SB3774 Aquinas/ HB4920 Ammons) which would expand Earned Income Credit (EIC) Eligibilityinclude a new child tax credit and increase the amount of credit available to each low-income taxfiler.

“I am proud to be the lead sponsor of HB4290, a bill that would expand the Earned Income Credit and lift millions in Illinois out of poverty by providing much-needed tax relief to low-income people. Illinois’ current tax system is one of the most regressive in the nation, locking out more than a million of our neighbors from their basic needs in favor of a wealthy few,” said Rep. Carol Ammons (D-Urbana) . “As Governor Pritzker prepares for the annual budget address, I urge him to put Illinois on the path to a fairer tax system by expanding the earned income credit.”

The bill to expand Illinois’ Earned Income Credit (EIC) would provide tax relief to 4.5 million low-income Illinoisans. The bill uses the popular and effective tax credit as a way to get more dollars straight into households across the state. For most families, that would mean, on average, $600 in reimbursement at tax time. The bill proposes to expand eligibility to nearly one million low-income residents who are currently excluded from the credit, and then increase the amount of credit available to all recipients.

Similar to the federal EITC, the current state EIC provides income tax relief to most workers earning less than $56,000 a year and would total up to $1,200 in a tax return. income. the newly introduced state bill Expand the Illinois Earned Income Credit to include groups currently ineligible for reimbursement, namely childless workers ages 18-24 and over 65 and immigrants who file taxes with an ID number. individual tax identification (ITIN). It would also create a statewide child tax credit of at least $600 for parents or legal guardians of children under 17. Finally, over three years, it would increase the federal EITC’s current 18% matching credit amount to 25%, providing hundreds of dollars more each year for families in need.

Governor Pritzker released a declaration Friday, praising current state and federal income tax credits and calling on taxpayers to take advantage of existing programs. The Pritzker administration has also spent the past few years promoting a joint outreach initiative with the Illinois Department of Revenue to increase taxpayer participation in state credit. In 2021, 74,800 Illinoisans claimed a federal EITC credit but did not claim the state EIC, leaving $29.8 million on the table.

“The Earned Income Tax Credit is a huge benefit and puts thousands of dollars in the pockets of low-to-middle income families each year,” Gov. JB Pritzker said in the statement Friday. “Even if someone owes no taxes, they may still qualify for credit and receive essential funding that can be used for bills and necessities.”

Proponents of SB3774/HB4920 hope that Pritzker signaling support for the existing EITC will translate for him, including support for the tax credit expansion in next week’s budget speech.

“An expanded earned income credit would be a huge help to my family, especially as the pandemic has escalated again. Right now we really don’t have economic security. Costs for food, rent and public services have increased significantly this year, and it’s harder to provide for our children,” said Susana Salgado, a Chicago mother of three and community leader for Community Organizing and Family Issues’ POWER-PAC. The governor should make our tax system fairer, especially for undocumented and mixed-status families who are excluded from many government programs A few hundred dollars more at tax time would help us get out of a debt hole and reduce our stress.

The Coalition to Make EIC Work, a project of the Illinois Cost of Living Reimbursement Coalition, is leading the advocacy effort. The coalition includes more than 30 nonprofit, labor, consumer, immigrant rights and community-based organizations across the state.

This bill comes at a time when the state is looking for ways to support communities hardest hit by COVID-19. An extension of the IEC to immigrant families, the elderly and young workers without children would help strengthen the safety net for groups excluded from federal coronavirus relief programs.

To learn more about the bill, see the backgrounder at bit.ly/expandEIC22.

Lawmakers and Advocates Urge Governor Pritzker to Include Earned Revenue Credit Expansion in FY22 Budget


Source link

Share.

About Author

Comments are closed.