New Data from CFED on the Strength of State Policies

CFED LogoCFED 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.

Compared to a year ago, we did not see dramatic changes in the strength of state policies since 2011. States like Vermont, New York and Oregon still have some of the strongest policies in the country, while states like Alabama, Nevada and Mississippi have some of the weakest.

One of the 12 policy priorities we examine in CFED’s Scorecard is Tax Credits for Working Families, which looks at whether states have enacted a state-level Earned Income Tax Credit (EITC), Child Tax Credit, and Child and Dependent Care Tax Credit.

CFED Interactive Map

Click on the image to view the interactive map.

Despite substantial legislative action, few states enacted changes to these tax credits. Those that were adopted were both positive and negative. Illinois doubled its EITC from 5 percent to 10 percent of the federal credit. Although advocates defended the Kansas EITC from elimination, the state, unfortunately, eliminated its Child and Dependent Care Credit, which was 25 percent of the federal credit. In several states (IN, NC, OR), the state EITC is currently being reviewed by the legislature with the possibility of elimination in 2013.

To date, 26 states (including the District of Columbia) have enacted state EITCs, 17 states have Child and Dependent Care Tax Credits, and four states have Child Tax Credits.

To learn more about recent state policy action, you can listen to a recording of our webinar providing additional analysis, as well as commentary on how the upcoming elections could shape opportunities to push an assets agenda in 2013.

By Jennifer Brooks, Director of State & Local Policy, and Ethan Geiling, Senior Policy & Research Associate, CFED. Jennifer also serves on the Policy Committee of NCTC’s Board of Managers.

About National Community Tax Coalition

National Community Tax Coalition (NCTC) is the nation's largest, most comprehensive membership organization for community-based organizations offering free tax and financial services to low-income working families.

Posted on October 30, 2012, in NCTC and tagged , , , , . Bookmark the permalink. Leave a comment.

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