New public opinion research reveals broad public support for additional government action to provide economic relief, with a large majority of voters prioritizing urgent government aid over concerns about increasing the debt.
Read moreHouse advances long-fought and significant improvements to EITC, CTC
Some of the ideas for a modernized EITC that ESP has long supported, including making it available to younger and older workers, are now on the top of the agenda in Washington.
Read moreWith Next Relief Bill on the Horizon, More Than 150 Economists Call For Recurring Cash Payments
The economists called automatic, ongoing direct cash payments “an essential tool that will boost economic security” and fend off economic calamity.
Read moreWithout Action from Congress, Families & the Economy Face Calamity On July 31st
On July 31st, much of the financial support millions of American families have received from the CARES Act will end, cutting off critical funding that has kept families afloat – just as rent comes due.
Read more3/4 of House Dems back regular payments
Lawmakers are coalescing around a call for regular direct payments to help families impacted by the crisis lasting until the economy recovers, including:
Both the Congressional Progressive Caucus and New Democrat Coalition have called for regular payments, together representing 3/4 of the Democratic caucus
Over 60 prominent House and Senate members, led by Sen. Kamala Harris, Reps. Rashida Tlaib, Ayanna Pressley, Ilhan Omar, Alexandria Ocasio-Cortez
Sens. Michael Bennet, Sherrod Brown and Cory Booker and their House counterparts, Reps. Madeleine Dean and Don Beyer
CARES 2: Fixes needed to get more money to more people, more quickly
Following the passage of the CARES Act that gave direct cash assistance to millions of American families, Congress is already working on CARES 2 -- another direct cash infusion to help those struggling from the economic crisis.
Of CARES 2, Speaker Pelosi said, “Let’s do the same bill we just did, make some changes to make it current.”
Extraordinarily, CARES 1 already expanded who qualifies for cash assistance in America. UI was dramatically expanded to include gig, part-time and freelance workers for the first time. And the one-time $1,200 checks will go to nearly every American making less than $100,000, including those with no income for the first time. These signal a significant shift in our understanding of who is deserving of help in America.
But CARES wasn’t perfect. As we look at CARES 2, Congress needs to “make some changes to make it current.” Already, some Members of Congress have proposed solutions -- but there’s more to be done to address the gaps and the deepening need:
The one-time $1,200 payments aren’t enough.
Americans should get monthly $2000 payments for the length of the crisis. A growing number of proposals from Sens. Michael Bennet, Sherrod Brown, and Cory Booker, Republican Sen. Josh Hawley, Sen. Bernie Sanders, Reps. Don Beyer and Madeleine Dean, Reps. Tim Ryan and Ro Khanna, Rep. Maxine Waters, Rep. Rashida Tlaib, Rep. Ilhan Omar, Reps. Pramila Jayapal and Mark Pocan, and the New Democrat Coalition in the House would make direct payments recurring.
We should extend payments beyond the immediate crisis to help Americans who were already on the verge of poverty. In addition to direct cash payments to keep people’s heads above water, some members of Congress, including Speaker Pelosi, Rosa DeLauro, Ways & Means Chairman Richie Neal, and others are looking at expanding the Earned Income Tax Credit to help low- and middle-income people get back on solid ground and build a strong foundation to weather the next storm.
Large groups of Americans were left out.
Undocumented workers and adults and children with Social Security numbers who live in mixed-status households are excluded from direct payments (though the latter groups were eligible for tax cuts under the TCJA). Rep. Lou Correa introduced a bill that would fix this by including individuals who file taxes using an ITIN. Rep. Ilhan Omar is planning to address mixed status households.
College students and older high school students are not eligible. Senator Tina Smith introduced a bill backed by Democratic Whip Dick Durbin that would fix this by making older children and adult dependents eligible for a direct payment. The same bill was introduced in the House by Rep. Angie Craig.
Many people won’t see their checks for months, or at all.
Some Americans will have to wait months for payments. While the first 60 million payments are expected to go out next week via direct deposit--a sign that the Treasury Department is capable of making large numbers of payments quickly--Americans who don’t have current bank information with the Treasury Department will have to wait longer for the agency to issue paper checks. While many of these delays will resolve once the Treasury Department has people’s information, Congress should look at using SNAP/TANF cards and Treasury prepaid debit cards as additional ways to get money out faster.
Many low-income veterans, seniors, and people with disabilities who don’t typically file tax returns would have to do so in order to receive benefits. The administration changed its guidance to allow Social Security recipients to receive payments automatically, and Senators Brown, Hassan, Bennet and Booker have urged the Treasury Department to do the same for SSI and VA beneficiaries.
Many of the most vulnerable, including the unbanked and those whose incomes are so low that they don’t file taxes, won’t receive any payments at all unless they file tax returns they’re not otherwise required to file. Congress must make it easier for these Americans to receive payments without having to go through the burdensome process of filing a tax return.
By the Numbers: A Cost-of-Living Refund
The Earned Income Tax Credit (EITC) is recognized as one of the country’s most effective anti-poverty programs. Refundable tax credits including the EITC helped keep nearly 8 million Americans out of poverty in 2018.
It is because of this success that Economic Security Project is leading a campaign to expand and modernize the EITC to put more money in the pockets of those who need it most.
The Cost-of-Living Refund would increase the number of people eligible for the EITC by reaching further into the middle class, including workers without dependent children, and including workers starting at age 18. The policy would also broaden the definition of work to include family caregivers and low-income students. Learn more about the Cost-of-Living Refund and Economic Security Project’s campaign.
In recognition of #EITCAwarenessDay, here’s a look at the Cost-of-Living Refund by the numbers:
3.1 million: The number of households in ME and CA that will be helped with the rising cost of living and housing due to the recent EITC expansions.
153.7 million: The number of Americans that would benefit from a Cost-of-Living Refund, compared to 25 million Americans who received the EITC in 2019.
$400: The amount of an unexpected expense that 4-in-10 Americans say could push them into financial ruin.
$4,000: The amount an eligible individual could receive per year with a Cost-of-Living Refund. Married couples can receive up to $8,000.
$90,000: The maximum amount a family can make and be eligible for a Cost-of-Living Refund. The Cost-of-Living Refund reaches into the middle class to reduce financial instability.
43.5 million: The number of Americans that were unpaid caregivers in the last year. The Cost-of-Living Refund would broaden the definition of work to include family caregivers, putting money in the pockets of millions more people.
This EITC Awareness Day, let’s make the EITC work better for families all year long
Our latest report explores how turning annual tax refunds into a monthly income boost would help keep families from falling into poverty.
Read moreNew report: a strong minimum wage and the EITC work best together
Economic Policy Institute and Institute for Research on Labor and Employment weigh in on how the Earned Income Tax Credit and $15 minimum wage combine to raise wages and reduce poverty.
Read moreRep. Gwen Moore’s Bill to Put Money Back in Families’ Pockets
Economic Security Project Action is proud to announce its support for Congresswoman Gwen Moore’s (WI-4) Worker Relief and Credit Reform (WRCR) Act.
Read moreCalifornia, Maine become first states to pass Cost-of-Living Refund bills
This week, California and Maine became the first two states in the country to pass Cost-of-Living Refund legislation, bills that help more working families make ends meet by expanding and modernizing the Earned Income Tax Credit (EITC).
Read more"Dr. King said that the only solution to poverty is to abolish it directly. So, let's get busy ya'll."
Takeaways from an Urban Institute discussion on addressing poverty and the Cost-of-Living Refund.
Read moreCA voters strongly support Gov's proposal to expand EITC and close tax loopholes for corporations and the wealthy
California voters strongly support proposal to expand the EITC and limit tax deductions for wealthy people and businesses. With very neutral information, 63% support the overall proposal (24% opposed), with majority support for every element of the proposal.
Read moreITEP Report Finds Cost-of-Living Refund Policies Benefit Taxpayers More than TCJA →
The Institute on Taxation and Economic Policy recently released a report assessing a few different Cost-of-Living Refund policies and concluding they would make significant progress on boosting economic security for low-income and middle-class people.
Read moreCA Budget Includes Ambitious Cost-of-Living Refund for Families
On Thursday, Governor Newsom rolled out his revised budget proposal, which included a Cost-of-Living Refund for Californians, which would put money back in the pockets of working families that need it the most. Take a look at some of the extensive coverage of the ambitious proposal.
Read moreCory Booker: Expanding the Earned Income Tax Credit is a Racial Justice Issue
Is taxing the wealthy a racial justice issue? Sen. Cory Booker was asked at the recent She the People forum and couldn’t have been clearer: “ABSOLUTELY.” His recently-introduced Rise Credit, a Cost-of-Living Refund, would tax the wealthy to put more money into the pockets of those who need it the most.
“This is absolutely a racial justice issue, an economic justice issue, where you have Americans now looking at a nation where corporate profits are at an 85-year high and wages are at a 60-year low,” said Booker.
And he didn’t stop there. Senator Booker also laid out why caregivers deserve to be recognized for their work: “There are so many people who have to stay home and take care of a spouse with dementia, or a special needs child. That is work too, and they should qualify for a credit.”
Take a look at this short video on how Sen. Booker says his Rise Credit would help American workers.
Cory Booker latest candidate to back a Cost-of-Living Refund
Sen. Cory Booker has added his voice to a growing number of 2020 candidates advocating bold policies that put money directly back into workers’ pockets through a Cost-of-Living Refund.
Read moreWhat would a Cost-of-Living Refund mean to these women?
Half a million single moms hold full-time jobs and still lived in poverty. Watch this video to see to how a Cost-of-Living Refund could benefit these single working mothers.
What could economic security look like in Chicago?
Six Chicagoans shared their experiences with economic security as part of the report produced by the Chicago Resilient Families Task Force.
Cost-of-Living Refund proposals announced in Congress, California
On top of a dramatic increase in the Earned Income Tax Credit, the new legislation takes the critical additional step of expanding the definition of work to include family caregivers and students.
Read more