77th Annual Meeting

REQUIRE THE EARNED INCOME TAX CREDIT TO BE CALCULATED BY THE INTERNAL REVENUE SERVICE TO BETTER ACCOMMODATE WORKING FAMILIES AND INDIVIDUALS

WHEREAS, The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low to moderate income working individuals and families, originally approved by Congress in 1975 to offset the burden of social security taxes and to provide an incentive to work; and,

WHEREAS, the Earned Income Tax Credit is the nation's largest wage support for low-income workers; and,

WHEREAS, cities are the economic engines of this country, and mayors are responsible for leading local and regional economic growth and the Earned Income Tax Credit provides working families who struggle to stay above the poverty line with a tax credit that makes a difference to their quality of life; and,

WHEREAS, when the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit, creating household revenue for low-income heads of families; and,

WHEREAS, to qualify for EITC, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return, and must either seek community tax preparation services, or pay for a tax preparation service, creating a disincentive to requesting the EITC; and,

WHEREAS, the website of the Internal Revenue is sufficiently complicated and requires up to 30 minutes to utilize the online tool to calculate EITC, thereby reducing its effectiveness to families who do not have access to broadband; and,

WHEREAS, tens of thousands of households fail to see revenue from the EITC to which they would be otherwise entitled, if access to EITC were made easier,

NOW, THEREFORE, BE IT RESOLVED, that The United States Conference of Mayors calls on Congress to reform the process of applying for the Earned Income Tax Credit by requiring the Internal Revenue Service to provide the calculation for EITC, so that the benefits available to lower income families and individuals will be increased, simplified, and easier to access.