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Why Double the Illinois Earned Income Tax Credit (EITC)?

A new issue brief by the Fiscal Policy Center (FPC) highlights the impact and importance of raising Illinois’s Earned Income Tax Credit (EITC) from 10 to 20 percent of the federal EITC:

  • Doubling Illinois’ EITC puts an additional $300 back in the pockets of hard-working individuals and families who qualify, helping ensure that people who work are able to make ends meet and avoid poverty.
  • Doubling the state EITC could yield an estimated $322 million in additional local economic activity across the state, boosting local business and economies.Go to EITCWorks.org to see the breakdown of this economic impact by Illinois House Legislative District.
  • Doubling Illinois’ EITC improves children’s chances of success as adults.
  • Doubling Illinois’s EITC is an important step towards addressing upside-down Illinois taxes.

For fifteen years, Illinois lawmakers on both sides of the aisle have recognized that the state EITC is smart policy: past efforts to enact, strengthen, and expand the EITC have been marked by bipartisan support.

Building on those efforts to lift working families and boost local economies, lawmakers should take immediate steps to double Illinois’ EITC to 20 percent of the federal credit.

By doing so, people who work for low or modest wages will be better able to make ends meet; local businesses will see more economic activity; children of EITC recipients will have improved chances of success as adults; and Illinois taxes will be fairer.

Doubling the state EITC is smart policy, and it’s the right thing to do.

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