Rep. Watson Coleman Reintroduces Working Class Tax Cut Bill
Today, Rep. Bonnie Watson Coleman (NJ-12) introduced the EITC Modernization Act, which would cut taxes for low- and middle-income families.
“The very richest people in this country can afford to hire accountants and attorneys who exploit every loophole and back door to avoid paying what they owe in taxes,” said Rep. Watson Coleman. “Meanwhile, honest, hard-working families pay a far greater share of their total wealth in taxes, supporting the public services that all Americans — rich or poor — benefit from. It’s an injustice that’s gone on far too long. That’s why I’m introducing the EITC Modernization Act to give working class families the relief they deserve.”
Rep. Watson Coleman’s bill would extend eligibility for the EITC to caregivers and independent students pursuing higher or vocational education, providing a measure of financial stability to both groups that will help drive economic growth across the communities in which they reside.
Currently, independent students who would otherwise qualify for the EITC based on their income are not eligible for the credit, effectively disincentivizing low- and middle-income individuals from pursuing higher education.
Additionally, The National Alliance for Caregiving and AARP found nearly 40 million Americans are providing unpaid care, with the economic value of this unpaid work amounting to an estimated $600 billion. AARP notesthis estimate is conservative and does not consider the financial cost of care (such as out-of-pocket and lost wages) or account for the complexity of the care provided (medical or nursing tasks).
In addition to broadening eligibility, the EITC Modernization Act would:
- Raise the maximum credit allowed for independents with no children from $600 per year to $1,200 per year
- Create an option for recipients to receive their benefits monthly, to help cover day-to-day expenses as they arise
- Fund the Volunteer Income Tax Assistance (VITA) Program, which offers free tax help to people who generally make $54,000 or less, to ensure working Americans can get the help that they need
The bill is co-sponsored by Reps. Jahana Hayes (CT-05), LaMonica McIver (NJ-10), Eleanor Holmes Norton (DC-At Large), Sanford Bishop (GA-02), Hank Johnson (GA-04), Bennie Thompson (MS-02), and Yvette Clarke (NY-09); Sheila Cherfilus-McCormick (FL-20); Yassamin Ansari (AZ-03); and Sydney Kamlager-Dove (CA-37).
The full text of the bill can be found here.