EITC and CTC Final

Embed Size (px)

Citation preview

  • 7/23/2019 EITC and CTC Final

    1/2

    The Honorable Mitch McConnell The Honorable Harry ReidMajority Senate Leader Minority Senate LeaderUnited States Senate United State SenateWashington, DC 20510 Washington, DC 20510

    The Honorable Paul Ryan The Honorable Nancy PelosiSpeaker of the House Minority LeaderU.S. House of Representatives U.S. House of RepresentativesWashington, DC 20515 Washington, DC 20515

    December 2, 2015

    Dear Speaker Ryan, Leader Pelosi, Majority Leader McConnell, Minority Leader Reid, and Honorable Members ofCongress:

    As the Steering Committee of the National Taskforce to End Sexual and Domestic Violence (NTF), comprised of

    national leadership organizations advocating on behalf of victims of sexual assault and domestic violence, we

    represent thousands of organizations across the country dedicated to ensuring all survivors of violence receive the

    protections they deserve. We write to you urge you to make permanent the key provisions of the Earned Income Tax

    Credit (EITC) and refundable Child Tax Credit (CTC) before they expire in 2017. Policymakers should also close a

    significant gap in the EITC by expanding it for childless workers,i.e. working adults without children and non-

    custodial parents.

    The EITC and CTC are among the nations strongest tools to combat poverty and achieve self-sufficiency. Thesetools lift more children in working families out of poverty than any other single program, and are designed to

    encourage and reward work. Together in 2013, these credits lifted 9.4 million people out of poverty, and made 22

    million others less poor. Research shows that the EITC and CTC help families at all stages of life, including infant

    and maternal health, improved school performance, greater college enrollment, increased work and earnings, and

    even higher social security retirement benefits. These working family tax credits reward and boost employment

    among parents and subsequently reduce childhood poverty.

    While domestic violence occurs across all socio-economic groups, women living in poverty experience domestic

    violence at higher rates. Women and men who experienced food insecurity or housing insecurity in a 12-month

    period had a significantly higher prevalence of rape, physical violence, or stalking by an intimate partner in that same

    time period, as compared to women and men who did not experience food insecurity or housing insecurity.iEconomic resources can be lifesaving tools in increasing survivorsoptions for safety. An EITC or CTC refund can

    provide survivors with the means to leave an abusive partner or can help them become self-sufficient after leaving an

    abuser.iiSurvivors of domestic violence often stay with or return to abusive partners because of financial

    dependency. These programs are a critical piece of the puzzle, helping survivors move from short-term safety to

    long-term security. A local program provided this account of how a survivor used EITC to help her financial planning

    and secure the start of her economic stability:

  • 7/23/2019 EITC and CTC Final

    2/2

    Susanna is a survivor of domestic violence with two young children. When she implemented a plan to keep

    herself and her children safe from her abuser, she incurred debt for an emergency stay in a hotel and basic

    living expenses after being cut off from a joint account. Moving into an apartment allowed her to focus on

    parenting her young sons and working toward her professional goals. At tax-time Susanna accessed a local

    Volunteer Income Tax Assistance (VITA) site, where a trained volunteer prepared her taxes for free, saving

    her $350. The trained volunteer told her that because she worked in 2013 and had two young children, shewas eligible for the Earned Income Tax Credit. The EITC allowed her to pay off the $700 of debt she had on

    a high interest credit card, start an emergency savings account, and enroll in an Individual Development

    Account program. The EITC provided an opportunity for this family to create safety, stability, and most

    importantly, a pathway out of poverty. The funds deposited in her IDA allowed her to enroll in a program at

    the local community college. Upon graduation next year, her projected wages will be between $19-21/hour

    and she is looking forward to a career in the medical field.

    If Congress allows key provisions of these pro-work tax credits to expire, more than 50 million Americans, including

    25 million children, will suffer by losing a part or all of their EITC or CTC. This would affect 1 million veteran and

    armed forces families, married couples with more than two children, and low and modest income working parents.

    As Senators and Representatives consider tax proposals that would assist businesses and corporations, they must

    not forget their responsibility to low-and modest-income workers and their families who work for such companies.

    Congress should make these key EITC and CTC provisions permanent, and fix the EITC gap for childless workers. If

    you have any questions as you work on these issues, please contact Marium Durrani [email protected].

    Sincerely,

    The National Task Force to End Sexual and Domestic Violence

    iBreiding, M.J., Chen J., & Black, M.C. (2014). Intimate Partner Violence in the Un ited States2010. Atlanta, GA: National Center for Injury Prevention andControl, Centers for Disease Control and Prevention.iiwww.idaresources.acf.hhs.gov

    Cc:United States Senate Committee on FinanceU.S. House of Representatives Committee on Ways and Means

    mailto:[email protected]:[email protected]:[email protected]:[email protected]