The Cost-of-Living Refund incorporates key modernizations to the current EITC by:
Providing support for more people (reaching further into the middle class, having no upper age limit for recipients, including childless workers, and extending tax credits to all tax filers) to reduce financial instability up the income ladder
Expanding the definition of work to include caregivers and students, to help families and individuals take care of one another, acquire skills, and still get ahead
Making the EITC user-friendly by providing the option to receive the credit monthly and through automatic filing, simplifying the complexity of the EITC and making the benefit more predictable and easier to understand
“Supporting family caregivers through the EITC,” Caring Across Generations, 2019.
PAYING THE CREDIT MONTHLY
The value of monthly payments from the perspective of the “Submerged State,” The New Republic, 2011.
Monthly payment policy recommendations:
SIMPLIFYING THE CREDIT TO IMPROVE ACCESS
Simplified/automatic filing policy recommendations:
ComplementING the minimum wage
“State earned income tax credits and minimum wages work best together,” Center on Budget and Policy Priorities, Mar. 2019.
Expanding to younger and older workers
“Expanding the Earned Income Tax Credit Can Support Older Working Americans,” Urban Institute, September 2019.
“The Earned Income Tax Credit and Older Workers,” AARP, January 2009.
Extending Tax Credits to All Tax FilerS
“California’s Opportunity to Support All Immigrant Families & Communities,” California Budget & Policy Center, October 2019.
“HB 3028-A Makes Oregon’s EITC More Equitable and Effective,” (ITIN filers), Oregon Center for Public Policy, 2019.
“Expanding the CalEITC Is an Effective Way to Invest in California’s Children, But Hundreds of Thousands of Children of Immigrants Won’t Benefit Unless Policymakers Act,” California Budget & Policy Center, May 2019.