Tax Policy 101

Many families are an unexpected medical bill or pink slip away from being left behind.

Faced with stagnant real wages, out-of-control energy prices, home foreclosures and poor employment prospects, America’s low-income workers are concerned about their economic security.

Our nation’s tax policy plays an important role in boosting the economic fortunes of American families by offering positive incentives, while helping to lessen the impact of economic downturns.

A Tax Credit That Makes A Difference

One tax policy stands out in its success. The Earned Income Tax Credit (EITC) encourages personal responsibility, rewards hard work and helps families maintain economic independence. More than five million people are lifted out of poverty each year by this credit, most of them children. For our 30,000 clients, that money often means the difference between making ends meet and falling behind.

Take Deborah’s case. A single mother with one child at home, she works hard as a bus driver, making $18,000 a year. By claiming tax credits like the EITC, she offsets her entire tax liability -- receiving more than $3,100 back from the federal government (17% of her income). Because of that money, she's able to make ends meet, put food on the table and care for her family.

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