California Budget and Policy Center: How Would Current State EITC Proposals Benefit California's Workers and Their Families?

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Momentum for creating a state Earned Income Tax Credit (EITC) in California is building. As we discussed in a recent report, a state EITC would foster economic security among low- and moderate-income workers by building on the federal credit of the same name. Several EITC proposals are currently being discussed in the Capitol, and to help policymakers assess their relative merits, we’ve compiled an analysis by the Institute on Taxation and Economic Policy (ITEP) estimating how each proposal would benefit California’s workers and their families. The sections below and the accompanying table provide a quick overview of two proposals: Assembly Bill 43 (Stone, et al.) and Senate Bill 38 (Liu). A third bill that proposes to create a state EITC — Senate Bill 8 (Hertzberg) — is not discussed here because the details of that proposal are not yet known.

Read the full report here.