Press Releases
Pascrell, Acorn Announce Legislation To Expand Earned Income Tax Credit
Washington, DC,
February 12, 2007
Tags:
Economy
LEGISLATION WILL EXPAND EITC TO LOW INCOME FAMILIES AND INDIVIDUALS, VETERANS, AND MARRIED COUPLES U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) a member of the House Ways and Means Committee today joined members of Paterson ACORN to announce the introduction of legislation that will strengthen the Earned Income Tax Credit (EITC) to benefit more low income families and individuals, veterans, and married couples. The “Strengthen the Earned Income Credit Tax Act of 2007” is the first tax reform legislation that Pascrell will introduce as a new member of the tax writing Ways and Means Committee. “I am proud to address the EITC program as my first tax reform proposal on the Ways and Means Committee. Congress is morally obligated to lift up the most hard pressed people in our communities. This legislation provides an opportunity for the federal government to wake up to the plight of our most underserved communities and narrow the widening gulf between the rich and poor in America.” The Strengthen the Earned Income Tax Credit Act would expand tax relief by increasing relief for the marriage penalty, increasing credit for families with three or more children and individuals, and by permanently extending combat pay in the calculation of EITC. Increase Marriage Penalty Relief: This legislation would increase the additional marriage levels from $2,000 in 2007 to $3,000 in 2008 going up to $5,000 in 2012. Increase the credit for families with three or more children: This legislation would raise the credit rate by 5 percent helping many families live above the poverty level. Slow Down the Phase-out rate for individuals without children: This legislation would allow an individual earning below $16,950 to be eligible for the EITC. Today the EITC for individuals is only for those making up to $12,120. Permanently Extend Combat Pay in the Calculations of EITC: This legislation would make permanent a proposal to allow members of the armed forces to include combat pay (which is generally nontaxable) for the purpose of computing their earned income credit. The Strengthen the Earned Income Tax Credit Act is fiscally responsible and compliant with the pay-as-you-go guidelines crafted by the Democratic leadership in January at the start of the 110th session of Congress. The cost of the legislation will be offset by rescinding the necessary Bush tax cuts targeted to the wealthiest .5 percent of our population. Rep. Pascrell’s legislation is supported by ACORN, the Association of Community Organizations for Reform Now. ACORN is the nation's largest community organization of low- and moderate-income families, working together for social justice and stronger communities. Since 1970 ACORN has grown to more than 220,000 member families, organized in 850 neighborhood chapters in over 100 cities across the U.S. and in cities in Canada, the Dominican Republic and Peru. In the 8th Congressional District of New Jersey alone, 10, 825 eligible taxpayers did not claim their EITC last year amounting to approximately $22 million of unclaimed credit. “New Jersey is an extremely expensive place to live. The people of this state must be afforded every opportunity to collect their fair share of federal dollars. It is an economic call to arms when millions in federal taxes go unclaimed in New Jersey,” stated Pascrell. On Tuesday, February 13 Congressman Pascrell will participate in a Ways and Means subcommittee hearing led by U.S. Rep. John Lewis that will examine current outreach efforts by the Internal Revenue Service, public interest organizations, community volunteers, and business coalitions to assist workers in claiming the Earned Income Tax Credit. “I look forward to working with Congressman John Lewis and continuing my work with groups like ACORN to expand the benefits and generate more awareness for the EITC program, concluded Pascrell.” ### |