The Earned Income Tax Credit, the Child Tax Credit, and other refundable tax credits for working families have become key tools in giving families a fighting chance for a better future. When taking these tax credits into account, more than 10 million Americans, including more than 5 million children, were effectively lifted above the poverty line in 2012. The earned income credit also has long-term benefits by improving children’s academic performance and future earnings as adults.
Build a Better Economy for Texas Working Families
In Texas, we have a rather unique blend of relatively low unemployment with high poverty. In other words, we have plenty of folks who are working — and working hard — but not making ends meet. Fortunately, we have useful, yet often overlooked, tools that enable Texas to fight poverty and expand opportunity: refundable tax credits for low-income workers. With tax filing season upon us, we should consider how Texas can maximize and build upon these platforms for prosperity.