OFA Webinar: Safety Net Responses: Maintaining and Strengthening Tax Credits to Reduce Poverty

Federal benefits programs, such as TANF and SNAP, and tax credits, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit, can help encourage work and reduce poverty among working families. In the 2016 tax year, almost 26 million working families and individuals in every state received the EITC, which is available to low- and moderate-income families and individuals. According to the Center on Budget and Policy Priorities (CBPP), families often use these credits to pay for necessities, repair homes or vehicles, and in some cases, obtain additional education or training to boost their employability and earnings. Additionally, research indicates that children in families receiving the tax credits do better in school, are likelier to attend college, and earn more as adults. Looking at the Supplemental Poverty Measure (SPM), the Brookings Institution reports that these tax credits lowered the national poverty rate by three percent in 2015, equivalent to lifting 9.2 million people above the poverty line. Many states and municipalities also operate state tax credit and subsidy programs that can enhance the benefits associated with federal credits.

This facilitated webinar on January 30, 2019 from 1:00 p.m. to 2:30 p.m. ET shared how they use their state and local programs, strategies, and informational tools to deliver valuable services and disseminate information about the value of tax credits and their impacts on low-income, working families. Presenters discussed strategies for how TANF programs and others can promote and leverage these programs to support the families they work with.