The Community legislature's Finance Committee voted last week to raise taxes on Working Families an estimated $ 205 by deducting the earned income tax credit. This is a serious misstep, which hampers the work of the Families.
EITC is a powerful tool for poverty reduction. First, in accordance with the federal level, the President Gerald Ford, and the recipients must work to increase the income phaseout is a concept is not the right program's all-or-nothing consular. Instead, create the EITC offers incentives to work.
The Federal EITC is expanded and the democratic and Republican congresses in line with the goals of the Presidents Ronald Reagan, George H.W. Bush, Bill Clinton and George w. Bush. Both support the EITC: efficiency and manage credit is required for as little red tape. At the same time, the Wisconsin legislative fiscal Office, such as the EITC, "will help lift Families out of poverty and poverty-level incomes will also help with the above, the persons who have difficulty to pay for the necessities of daily living."
Wisconsin is one of the 22 States which provide a match for the Federal EITC, including neighboring Minnesota, Iowa, Illinois and Michigan. In 2009, the State of Wisconsin Families received 273,939 EITC; many households, whose income is up to $ 49,078 are eligible. More than 80% of the current Wisconsin: n financial EITC from needy families or temporary TANF (commonly known as welfare). Thus, the use of TANF dollars for the families of Wisconsin, capable to support their families in the low-wage jobs.
It is important to understand that these cuts are more than reducing real incomes in low-income families. Wisconsin minimum wage is $ 7.25. But, according to the Wisconsin women's network, the annual consumption of family needs the combined salaries of $ 22.56 to cover the subsistence costs of the independent public support. Many families continue to struggle, therefore, the most common needs.
Social Development Commission, we have three free tax assistance sites, most of the eight with the tri-state region. Each year, we help approximately 11 000 households meet their taxes, many families to the state EITC.
We study each customer can keep track of how the tax declaration is used. 2011 tax season results show that notifications are not disposable. Instead, most Families depend on the returns to pay for critical household expenditure. 33.2% of the clients, for example, to use their return to pay for food and clothing, 23% is used for their return to pay for housing and 45.5% of all households were made up to use their return to pay other bills (medical costs including).
The legislature and the Governor of the Member State of the focus on the promotion of the Wisconsin: n economy and job creation. State EITC achieves these objectives during the Families improve the quality of life. EITC help working families keep more of their wages, pay for living expenses. State EITC recipients spend their grocery stores easily, the car repair shops and hospitals.
The reduction of state EITC does not remove these basic needs-food, shelter and medical care. These costs shall be formalised and reducing the risk of state EITC, of course, we will be screening these charges to the net equity of households in public programs, such as FoodShares, paragraph 8, and BadgerCare.
Because the already experienced Working Families economic stress, last week activities, invest more in the precarious position of Wisconsin Families. Our public budgets should not be in balance, the working families of backrests. The legislature should resolve this serious misstep.
Deborah blanks, is the Managing Director of the Commission for social development.
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