New proposals for strengthening tax credits, working families

Tax credits that help working families make ends meet should be treated as no less important than tax benefits exclusive to the very wealthiest of households. In fact, they’re even more critical to the overall stability of our nation’s economy.

Thus, NCTC has obtained the signatures of more than 300 local, state, and national organizations for a letter supporting new legislation to protect and strengthen the Child Tax Credit (CTC) and (EITC).

VITA = tax simplicity = tax reform

Strengthening VITA should be among the first orders of business for any federal tax reforms prioritizing “simplicity,” according to comments NCTC submitted to Congress on Tax Day.

The working families who would benefit from improvements in Volunteer Income Tax Assistance also need policymakers to bolster targeted tax credits as well as important savings policies, we added.

Congress seeks tax-reform ideas; let’s oblige

“Tax reform” can mean many different things. So, as Congress collects ideas for tax-code changes, it’s important that advocates for working families make clear our chief aim for any reforms: protecting and strengthening the well-being of struggling households.

Competing budgets; competing priorities

This week, the U.S. House and Senate voted upon each chamber’s respective majority budget resolution for fiscal year 2014. While the House budget passed in the House and the Senate budget is expected to pass in its own chamber in the next day or so, neither of these competing plans has much chance of being enacted or funded through the actual appropriations process. The Congressional Progressive Caucus has also released its own, “Back to Work Budget,” which is even less likely to be enacted, which picked-up only 84 votes in the House.

New Data from CFED on the Strength of State Policies

CFED recently released new data on the strength of state policies that help families create financial security and opportunity. These data capture policy changes that occurred in the 2012 state legislative session, or for which data became available after fall 2011.

You can see which states were the winners and losers using the interactive map, which shows net policy gains and losses across the country, and describes the changes in each state. You can also read an analysis of recent changes for each policy.

“Sequestration” = Big VITA Losses for Families

Could tens of thousands of families lose access to VITA’s free tax preparation services in 2013?

 

The federal VITA grant appears destined for an 8.2 percent cut – about $984,000 – under across-the-board budget reductions scheduled to take place in January. This VITA damage could affect services for up to 34,700 households, by NCTC calculations. And it’s just one example of how so-called “sequestration” cuts could erode crucial education, health care, and human services, unless Congress soon takes action to avoid what otherwise will amount to a full 10 years of such annual reductions.

Those drastic measures are rooted in the way policymakers decided to approach federal deficit reduction late last year: