The Earned Income Tax Credit (EITC) improves the economic security of working families by increasing the after tax incomes of low and moderate wage workers. MassBudget just released a short factsheet, Massachusetts’s Earned Income Tax Credit, which explains how the tax credit works, describes how many families and individuals it helps in Massachusetts, and examines the long-term effects of the EITC on families and children.
Recent research has linked EITC increases to a number of positive outcomes:
- Improved college attendance and graduation rates and better test scores, particularly in math.
- More work and higher earnings as adults for children raised in these low income families.
- Reductions in the early onset of disabilities and illnesses that often afflict poor children.
Over 400,000 working people in Massachusetts benefit from the state EITC. Most of them are supporting families. Increasing the state EITC helps those working people make ends meet and pay for basic necessities. The increased income can also make it more likely that their children will be able to reach their full potential. When low income working people have more purchasing power, and their children can grow up to contribute their full potential to our economy, that is good for all of us.