Tax Credits for Working Families at Risk in Indiana Senate
State Senator Brandt Hershamn (R, District 7) has introduced Senate Bill 344. This bill would, among other things, eliminate the Earned Income Tax Credit (EITC). The EITC has proven to be a successful measure in stabilizing the incomes of nearly 500,000 low-income working Hoosiers who have felt the devastating affects of increased poverty and decreased wages as a result of the Great Recession.
Eliminating the EITC would effectively raise taxes on low-income Hoosiers by nearly $86 million in 2012. This represents almost 15% of our population in Indiana.
With poverty increases (especially among children) and wage decreases reaching unprecedented levels in Indiana, our legislators should NOT be raising taxes on low-income working Hoosier families. Nationally, the EITC has lifted over 6 million out of poverty, including 3 million children.
Indiana’s EITC makes it possible for working families to repair a car, pay down bills, or meet their basic needs like paying for food, clothing, and rent.