July 29, 2020

Bloomberg: States Eye Anti-Poverty Tax Credit to Ease Covid Impact

media mention

The 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