New Senate bill may successfully address issue
A new report by CalEITC Coalition (Earned Income Tax Credit) reveals that only one in three California households are getting by financially, which has many anti-poverty advocates noting that the state budget must take more actions to assist and create new opportunities for struggling families.
In following that need, there is a call for Senate Bill 220 to expand Anti-Poverty Tax Credits. The CalEITC recently celebrated the protections and improvements for existing tax credits and outlined the final budget deal.
This proposal hopes to establish a more robust and strengthened tax code that would allow up to $2 billion in expanded tax credits and $275 minimum CalEITC in order to help assist low-income individuals with basic expenses. The cost of gas, diapers, food, and utilities has continued to increase along with unaffordable housing making it virtually impossible for families to set and reach financial goals set for themselves.
“We are heartened by the investments and protections made in the final budget deal between the Legislature and Governor,” said Anna Hasselblad, director of Public Policy for United Ways of California.
The CalEITC Coalition is composed of policy advocates, low-income service providers, labor representatives, and community and faith-based organizations. All of these groups have demonstrated success in their quest to prevent poverty and provide equity-building programs offering supplemental money for families. The budget protects critical progress in the CalEITC and the Young Child Tax Credit (YCTC). As of 2022, the Young Child Tax Credit will provide up to 1,083 per eligible tax return.
The coalition expressed gratitude to Senate Budget Committee and Chair Nancy Skinner for her leadership and the Franchise Tax Board leaders for their commitment. They were reportedly instrumental in the fiscal year 2023-24 state budget Budget which prevented Foster Youth Tax Credit payments from being swept up into an already complicated tax code.
“We thank Sen. N-----ancy Skinner for her leadership, championing efforts in the state budget to ensure former foster youth receive the tax credits they are rightfully entitled to,” said Shimica Gaskins, president and CEO of GRACE-End Child Poverty in California. “Without this urgent action, many foster youth will struggle to afford the high cost of living and soaring costs for basic necessities.”
The CalEITC Coalition has been instrumental in driving law state makers getting serious about anti-poverty, equity-building CalEITC and YCTC to provide a crucial lifeline to white, Black, and Latino who are impoverished and whose financial limitations have grown as inflation rises and stretched household budgets to a critical and or breaking point.
