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.
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.
Fact Sheet California’s Cash-Based Safety Net By Caroline Danielson May 1, 2023 Safety net programs that provide cash assistance help low-income Californians meet their basic needs. State and federal tax credits reach a large number of people, while programs that offer monthly payments provide a higher level of support to participants. This assistance keeps millions out of poverty—but not all who are eligible are enrolled.
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.
blog post Midway through California’s Extended Tax Season, Low-Income Filers Are Claiming Larger State Credits By Tess Thorman Apr 19, 2023 As of the end of March, the state had already refunded more dollars than in previous years to low-income tax filers through the California Earned Income Tax Credit (CalEITC) and the Young Child Tax Credit.
Report The California Poverty Measure: A New Look at the Social Safety Net By Caroline Danielson, Sarah Bohn, Matt Levin, Marybeth Mattingly Oct 1, 2013 A new way of measuring poverty in California shows that 22 percent of residents lived in poor families in 2011. It also underscores the importance of the social safety net for many families in the state. The safety net’s impact on children is especially dramatic—without the need-based programs included in the new measure, 39 percent (or 3.6 million California children) would be considered poor. A companion report released by the Stanford Center on Poverty and Inequality examines regional and demographic differences in poverty. This research was supported with funding from The Walter S. Johnson Foundation. Interactive Map: California Poverty Rates by County Interactive Graphic: Poverty and Social Programs in California
blog post Are Eligible Undocumented Immigrants Claiming the CalEITC and Young Child Tax Credit? By Tess Thorman Apr 4, 2024 Low-income Californians who file their tax returns with Individual Taxpayer Identification Numbers (ITINs)—primarily undocumented immigrants—are eligible for the California Earned Income Tax Credit and the Young Child Tax Credit. We examine trends in ITIN filers' claiming of these credits and discuss ways to improve uptake.
Report Geography of Child Poverty in California By Caroline Danielson, Sarah Bohn Feb 22, 2017 One-quarter of young children across the state live in poverty. In inland regions, reducing child poverty requires efforts to improve job opportunities. In many coastal regions, increasing access to affordable housing will help.
