Bloomberg: States Eye Anti-Poverty Tax Credit to Ease Covid Impact
media mentionThe various state programs differ widely with the key distinction being refundability. Twenty-three of the 29 EITC states have made their credits refundable—widely considered an important check against regressivity.
“Almost every state has an upside-down tax code, where the lowest-income taxpayers pay a much higher share of their income in state and local taxes than those at the very top,” said Meg Wiehe, deputy director of the Institute on Taxation and Economic Policy. “The few states doing better have a large refundable tax credit that offsets the regressive nature of many of the taxes states rely on.” Read more