Report Understanding the Reach of the California Earned Income Tax Credit By Tess Thorman Nov 13, 2023 State-designed and -funded tax credits for low-income families are a small but growing part of California’s anti-poverty portfolio. As policymakers explore ways to refine, increase, and supplement the California Earned Income Tax Credit (CalEITC), they could benefit from knowing more about where and when the CalEITC and similar credits are claimed.
blog post Examining the Federal EITC’s Impact on Poverty By Tess Thorman, Caroline Danielson, Sarah Bohn Jan 25, 2018 The federal Earned Income Tax Credit (EITC) keeps hundreds of thousands of Californians out of poverty. But its role varies widely across regions.
Report Evaluating State EITC Options for California By Thomas E. MaCurdy Mar 25, 2004 In recent years, California and other states have either considered or developed their own earned income tax credit (EITC) plans to supplement the federal EITC. A well-targeted state EITC can support various policy goals by supporting low-income families and increasing their incentives to work. This report lays out four distinct approaches to a state EITC and tests them against three criteria: their effects on work incentives, the distribution of benefits by family type, and cost. It finds that if California wishes to implement its own EITC, it should not simply “add on” to the federal plan. Rather, it should design a program that considers a family’s hourly wages as well as its earnings.
Policy Brief Policy Brief: Understanding the Reach of the California Earned Income Tax Credit By Tess Thorman, Mary Severance Nov 13, 2023 The CalEITC, introduced in the 2015 tax year, was originally designed to complement the federal EITC; it remains most generous to Californians with incomes too low to receive the maximum EITC. A better understanding of the factors associated with credit claiming can help the state increase participation.
blog post California’s New Tax Credit By Caroline Danielson, Sarah Bohn, Sara Kimberlin Apr 15, 2016 About 3 million tax filers in California are eligible to claim the federal Earned Income Tax Credit (EITC) this year, and an estimated 600,000 can claim the new state EITC.
blog post A California Earned Income Tax Credit By Caroline Danielson, Sarah Bohn, Sara Kimberlin Jun 3, 2015 The governor’s proposed state Earned Income Tax Credit adds to the mix of strategies policymakers are considering to address the state’s poverty rate—the highest in the nation when the cost of living is accounted for.
blog post Refundable Tax Credits Ease Poverty in California By Caroline Danielson Feb 5, 2014 Poverty and income inequality have become hot topics in policy circles at the state and national levels. PPIC has been looking at these issues, too.
blog post Video: Understanding the Reach of the California Earned Income Tax Credit By Mary Severance Dec 12, 2023 PPIC researcher Tess Thorman outlines a new report on the factors associated with participation in the California Earned Income Tax Credit (CalEITC), a state-funded benefit designed to improve low-income families' economic well-being.
blog post Testimony: The Role of State Tax Credits in Helping Low-Income Families By Caroline Danielson Oct 3, 2022 For a hearing of the Assembly Committee on Revenue and Taxation, PPIC’s Caroline Danielson discussed how the California Earned Income Tax Credit and the Young Child Tax Credit help mitigate poverty—and potential strategies for increasing uptake.
