Look to the Earned Income Tax Credit To Truly Help Lower Income Families And Childless Workers In RI
Here comes Governor Raimondo, and will it be Senator Erin Lynch of Warwick alongside her once again, looking to raise the job killing minimum wage?
The better option is the EARNED INCOME TAX CREDIT that actually helps low and moderate income working families, with or without children .
Read the 5 FACTS ABOUT THE EITC here.
Rhode Island needs to increase the tax credit for childless workers as approximately 47,000 childless workers in RI are not yet eligible for the EITC.
Raising the minimum wage alone doesn't cut it!
According to the NCPA (National Center For Policy Analysis):
"Many who would benefit from a minimum wage increase are not poor:
Thirty-four percent of workers who would see their wages increase live in a household making three times the poverty level, of $72,750 for a family of four.
Almost 60 percent of the new minimum wage workers live in households with incomes twice the poverty level or higher, or $48,500 for a family of four. In contrast, the EITC supports the working poor in a much more targeted way: Two-thirds of those benefiting from the earned income tax credit earn less than 1.5 times the poverty level. This includes a single parent earning less than $24,000 a year or a single person earning $17,000 or less."
Study after study shows that an increased credit for childless workers, along with a higher federal minimum wage ( $7.25 is the min wage requirement & RI is ranked as one of the top 10 states in the nation already having the highest minimum wage at $9.60), is considered the best possible policy option for making sure our state's lower-income workers are earning enough to support themselves and their families.
Increasing the minimum wage yet again, which would only drive up business operation costs and ultimately lead to more loss of jobs, is not the answer to help our low income workers. Rhode Island policy makers need to expand the EITC to childless workers, and if anything else, increase the credit!
Center on Budget and Policy Priorities: