Florida Policy Institute: Earned Income Tax Credit Crucial for Working Families
ITEP Work in ActionState EITCs are better targeted to people with low income than blanket tax exemptions, so they help to reduce the disproportionate impact of sales and excise taxes. According to new data from the Institute on Taxation and Economic Policy, a state EITC at 30 percent of the federal credit would reduce the share of income that Floridians in the lowest income quintile pay towards taxes from 12.7 percent to 9.3 percent, a 26 percent decrease.