Tax Policy
NCTC is a voice for fairness in our federal tax code. Our advocacy campaigns focus on expanding vital tax credits for working families, simplifying the tax code, eliminating corporate tax breaks and taxing wages and capital equitably.
The federal Earned Income Tax Credit (EITC), the Child Tax Credit (CTC) and the Child and Dependent Care Credit promote work while giving parents the financial boost they need to support themselves and their children.
The American Recovery and Reinvestment Act (ARRA) took a number of
steps to increase income tax fairness, while improving access to tax
benefits that were previously off limits to millions of families. It's
now up to Congress to make the following tax credit expansions
permanent:
1. Child Tax Credit: The Child Tax Credit is meant to help defray the cost of raising children, but until ARRA, many working parents earned too little to benefit from the credit. We must make the $3,000 income threshold permanent, making the refundable part of the Child Tax Credit available to most working parents.
2. Earned Income Tax Credit:
ARRA created a new tier for working parents with three or more children
and improved the EITC for married couples. Both of these changes must
be made permanent.
3. American Opportunity Tax Credit: At one time, education tax benefits were for the most part off limits to low-income families. ARRA changed this fact by a creating a new credit that is available to most families and covers both tuition and expenses that are not paid for by grants or scholarships.
When Congress takes up the middle class tax cuts in the coming months, we ask that they include permanent expansions of these vital tax credits. Not only do they bring more equality to the tax code, but they also offer an important work incentive.
Take Action to permanently expand vital tax credits included in the Recovery Act.
