Earlier today, Senators Sherrod Brown, Michael Bennet, Dick Durbin, and Ron Wyden released the Working Families Tax Relief Act aimed at strengthening the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).
Opportunity Fund supports the Working Families Tax Relief Act and believes that one of the most effective things we can do is reward work by putting more money back into the pockets of low-income families with children and other workers struggling to make ends meet. In California and in communities across the nation, we’re struggling with a growing concentration of wealth and widening income inequality that takes us further from an American economy that works for all.
Whether self-employed or running a mom and pop small business, many of the families running America’s 30 million small businesses are struggling just like far too many of their wage-earning neighbors. And the vast majority of our nation’s small businesses, 75%, are sole-proprietorships that can benefit from an expanded Earned Income Tax Credit (EITC).
And while most of Opportunity Fund’s small business borrowers surveyed for the first-ever Small Business Financial Health Survey by the Center for Financial Services Innovation (CFSI) are confident about the future, only 20% are prepared to cover a large, unexpected business expense with enough cash or savings on hand.
Living on the financial brink, the EITC is a key way for self-employed Americans to see their hard work rewarded with a tax credit that can make a real difference in household assets for families living in poverty.