2003 Adopted Resolutions
71st Annual Meeting
Denver

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EARNED INCOME TAX CREDIT PRE-CERTIFICATION

WHEREAS, in 1999, the Earned Income Tax Credit (EITC) lifted 4.7 million people, including 2.5 million children, above the poverty line-more than any other federal aid program; and

WHEREAS, currently, the value of the EITC credit is $32 billion, to the benefit of 18.4 million hard working, low income families; and

WHEREAS, the EITC represents money earned by hard working, low income families and in no way represents a give-away; and

WHEREAS, the EITC provides enormous economic benefit to our communities because recipients spend their EITC dollars on goods and services within our communities; and

WHEREAS, beyond reducing poverty, the EITC promotes work, reduces income inequity and helps low income working families build assets; and

WHEREAS, the IRS has recently proposed a new "pre-certification" process in which many EITC applicants must be "pre-certified" before they can apply for an EITC benefit; and

WHEREAS, the extensive documentation required for this pre-certification may be difficult, if not impossible, to obtain within the proposed six month deadline and will inevitably deter many eligible families from even applying for the EITC benefit to which they are entitled under federal law; and

WHEREAS, the IRS appears to be targeting low income working families applying for the EITC benefit while not requiring pre-certification for tax shelters purchased by corporations or tax benefits claimed by higher income individuals; and

WHEREAS, Rep. Charles Rangel (D-NY) has introduced legislation, H. R. 1894, that prohibits the IRS from implementing, without explicit congressional authorization, new requirements for the EITC beyond that already permitted under the current law,

NOW, THEREFORE, BE IT RESOLVED that The United States Conference of Mayors opposes IRS initiatives to impose new, burdensome requirements on hard working, low income families applying for the EITC; and

BE IT FURTHER RESOLVED that The United States Conference of Mayors supports H. R. 1894 to prohibit new EITC requirements without proper congressional authorization.