By David Gray
President Obama’s latest budget includes several important improvements to the pro-work Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) that will reduce poverty among low-wage workers and their families, reduce income inequality, strengthen work incentives, and give a boost to Louisiana’s economy — all without adding a dime to the federal budget deficit.
Expanding the now-tiny EITC for working childless adults and non-custodial parents (“childless workers”), an idea that has growing support across political lines, would help nearly 200,000 childless workers in Louisiana.
A childless adult working full time at the minimum wage pays significant federal income and payroll taxes, but receives a federal credit of less than $30. Childless workers are the only group of workers that the federal tax system taxes into — and in many cases, deeper into — poverty.