By Michael Baumker, USCM Interm
February 12, 2007

The Earned Income Tax Credit (EITC) took center stage at the January 26 Plenary Session of The U.S. Conference of Mayors 75th Winter Meeting. U.S. Conference of Mayors President Trenton Mayor Douglas Palmer and Council for the New American City Chair Detroit Mayor Kwame Kilpatrick spoke of the need for higher participation rates in the EITC program that provides eligible working families with a refundable tax credit. Palmer and Kilpatrick both encouraged mayors to spread the word about the EITC in their cities during the upcoming tax preparation season.

The EITC initiative is a part of The U.S. Conference of Mayors National Dollar Wi$e Campaign to promote financial education to city residents.

Palmer described the initiatives his city is taking to make a difference. In 2005, Trenton created the Greater Trenton Earned Income Tax Credit Assets Building Coalition. Palmer said, “The coalition melds the capabilities and resources of 12 federal, state, county, and city agencies, 19 CBOs and churches, five banks, and a utility company. Over the past year alone, we served hundreds of residents through community-based counseling in applying for the Earned Income Tax Credit.”

In Detroit, Kilpatrick has joined with the Accounting Aid Society to help citizens apply for the EITC program. In addition to the EITC, the Accounting Aid Society assists residents in applying for home heating assistance and property tax credits. “I am encouraging citizens to take advantage of this opportunity to get the tax refunds they deserve,” explained Kilpatrick. “I want our residents to have information about how to better manage their finances.”

The Dollar Wi$e campaign continues to work with mayors to increase knowledge about the underused tax benefit. Also during the plenary session, renowned children’s advocate Marian Wright Edelman endorsed the Dollar Wi$e Campaign’s efforts. “I want to say amen to the EITC, financial literacy, and Child Tax Credit campaign. If every person eligible for these programs…got their benefits, we could decrease poverty by 20 percent,” Edelman stated.

EITC has the ability to lift many low-income American families out of poverty. It is one of the largest anti-poverty initiatives from the federal government but goes unclaimed by many of possible candidates who do not know it exists. The refund can result in a return of as much as $4,500 for citizens who qualify.