Met Council Statement on Congressman Nadler’s Proposed Bill to Extend Access to the Earned Income Tax Credit (EITC)

The Metropolitan Council on Jewish Poverty (Met Council) released the following statement in response to Congressman Jerrold Nadler’s (D-NY) announcement of new legislation, the Tax Fairness for All Families Act of 2013, which would provide a larger Earned Income Tax Credit (EITC) to families with more than three children.

“Met Council supports Congressman Nadler’s proposed bill to extend access to the Earned Income Tax Credit (EITC) to families with more than three children. This bill will provide increased financial assistance for working parents who are coping with the burden of paying for food, rent, medical costs, transportation, and other expenses for more than three children.

Met Council serves as an advocate and defender for individuals and families in crisis – a voice for an overlooked population – and creates solutions for the growing problem of Jewish poverty in New York City. Met Council’s services include crisis intervention, legal and immigration assistance, benefits outreach and enrollment, kosher food pantries and vouchers, career training and assistance, domestic violence counseling, affordable housing, and home care.

Here is how Nadler’s bill would work:

  • The bill would provide an increasingly larger EITC for families with more than 3 children.
  • The size of a family’s EITC depends on its earned income and number of children.
    Under current law, a family’s EITC maxes out at 45% of income for 3 or more children regardless of the number of children in the family.
  • Nadler’s bill would expand the number of children for which a family can claim the EITC to 7 or more.  Families with 4 children would receive a 50% credit; 5 children a 55% credit; 6 children a 60% credit; and, 7 or more children a 65% credit.
  • For each additional child, there is a 5 percentage point increase in the EITC, which results in a 10-11% larger credit for each child.
  • The EITC phases out gradually as a family’s income increases, so that families are not all of sudden cut off from a benefit just because their income grows.
  • EITC is distinct from the Child Tax Credit, which is not fully refundable.
  • EITC was especially designed for low- to middle- income working families as a means of escaping poverty
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