EXPAND THE EARNED INCOME TAX CREDIT TO BETTER ACCOMMODATE WORKING FAMILES AND INDIVIDUALS

WHEREAS, the Earned Income Tax Credit (EITC) is the nation'slargest wage support for low-income workers; and

WHEREAS, while the EITC is an effective support for many low-income workers, it does not provide needed assistance to mostlow-wage childless workers and noncustodial parents; and

WHEREAS, the broad expansion would be used to encourage andincentivize work for those populations that otherwise would notsubstantially benefit from the EITC; and

WHEREAS, studies show that non-custodial fathers who earn more, pay more child support, visit their children more often and aremore likely to marry; and

WHEREAS, expanding EITC to non-custodial parents that are payingchild support encourages both work and responsible parenting;and

WHEREAS, waiting until age 25, as the current EITC for singlesdoes, may unnecessarily penalize young, non-college-boundworkers who are supporting families; and

WHEREAS, currently, if a couple is married both parents’earnings are counted when calculating the EITC, therefore, married families receive significantly less EITC benefits thanunmarried couples with children, which creates a marriagepenalty; and

WHEREAS, current EITC policy disadvantages low-income marriedfamilies compared to single parent families and it alsodiscourages couples who otherwise might marry; and

WHEREAS, eliminating the EITC marriage penalty for low-incomeworkers will strengthen American families; and

WHEREAS, public policy that supports low-income workingindividuals and families and encourages work strengthensAmerican society; and

WHEREAS, since EITC is not indexed to protect against inflation, its value to low-income workers becomes eroded over time,

NOW, THEREFORE, BE IT RESOLVED, that The United States Conference of Mayors calls on Congress to reform the EarnedIncome Tax Credit so that the benefits available to lower income families and individuals will be increased, simplified, andeasier to access; and

BE IT FURTHER RESOLVED, that Congress substantially expand theEITC amount by tripling it so that it better rewards hardworking, lower income families; and

BE IT FURTHER RESOLVED, that Congress expand the eligibility forsingle adults by significantly increasing the maximum earningscap for those workers from $12,000 to $18,000; and

BE IT FURTHER RESOLVED, that Congress expand the eligibility fornon-custodial parents who are paying child support bysignificantly increasing the maximum earnings cap for thoseworkers from $12,000 to $18,000; and

BE IT FURTHER RESOLVED, that Congress ensure that the EITCencourages an increased attachment to the workforce; and

BE IT FURTHER RESOLVED, that Congress should lower the age ofeligibility for the EITC from 25 years of age to 21 years of agewith the exception of making payments to full-time collegestudents who often have other means of support; and

BE IT FURTHER RESOLVED, that Congress should increase benefitsfor working single adults and non-custodial parents byincreasing the phase-in phase-out rate; and.

BE IT FURTHER RESOLVED, that Congress allow families withmarried parents to file for EITC separately and allow the parentwho claims the children to receive the EITC rates for families and allow the other parent to receive the new EITC rate forsingle individuals, and thereby alleviate the “marriagepenalty”; and

BE IT FURTHER RESOLVED, that Congress index the EITC to theminimum wage.