Weekly News Round-Up: January 13, 2012

January 13th, 2012

Here are some highlights from this week’s news on family tax credit issues. Remember – you can also track news coverage throughout the week by visiting our , where you can filter news by a specific credit and/or state.

  • On Thursday Kansas Gov. Sam Brownback proposed a tight state budget that would eliminate many tax credits and deductions, including the state Earned Income Tax Credit. “Eliminating the Earned Income Credit will have a devastating impact on working families. There is not a more proven anti-poverty measure than the EIC,” Crystal McComas, co-founder of the nonpartisan group Kansans United in Voice and Spirit, told the Wichita Eagle. (Kansas City Star, Wichita Eagle)

  • As talks resume in Congress on paying for the payroll tax holiday, Republicans are again proposing to find billions in savings by requiring lower-income parents claiming the refundable Child Tax Credit to provide their Social Security numbers. (Higher-income households would still not need to provide Social Security numbers to claim the credit.) According to POLITICO, the impact on Latino communities would be far more severe than first advertised when the House approved the plan last month. (POLITICO)

  • A Oklahoma legislative task force has recommended eliminating the state’s Earned Income Tax Credit, Child and Dependent Care Tax Credit, and property tax circuit breaker as part of an effort to reform the state tax system. House Minority Leader Scott Inman (D-Del City) said that House Democrats oppose eliminating these credits, and some members of the task force that proposed the plan have also expressed reservations. (OK Policy Blog, State Impact, Tulsa World, The Oklahoman)

  • On Tuesday Illinois Gov. Pat Quinn signed legislation that doubles the state’s Earned Income Tax Credit and increases the personal exemption by $50 to $2,050, indexed to the rate of inflation. The new law, effective for the 2012 tax year, expands the EITC from five percent of the federal credit to 7.5 percent next year, and 10 percent the year after. (Chicago Tribune)

Posted in Recent Updates, Weekly News Round-Up | No Comments »

About · Information guide. Not a tax preparation service: no bookings, quotes or dispatch. General information only, not professional advice. Not affiliated with, endorsed by or connected to any business with a similar name. Names and marks belong to their owners.