Res. No. 473
Title
Resolution calling upon the United States Congress to introduce and pass, and the President to sign, legislation to expand the Earned Income Tax Credit and, further, calling upon the New York State Legislature to introduce and pass, and the Governor to sign, legislation that would enable the City of New York to increase the City's Earned Income Tax Credit from five percent to ten percent of the federal Earned Income Tax Credit.
Body
By Council Member Dromm
Whereas, The Earned Income Tax Credit ("EITC"), first enacted by the federal Government in 1975, reduces tax burdens and provides the working poor with a tax credit on federal personal income taxes, which can exceed the taxes paid, as an incentive for low income workers to work; and
Whereas, The EITC is a refundable tax credit so that if workers' income tax liabilities are less than the amount of the credit for which they qualify, the workers would receive the remaining amounts as a refund; and
Whereas, Studies have shown that families use the EITC to pay for necessities and tuition, to make home and car repairs and, in some cases, to obtain additional education or training, which in return can increase earning power; and
Whereas, To be eligible for the EITC, one must have a qualifying child or be between the ages of 25 and 65; and
Whereas, For 2017, both earned income and adjusted gross income (AGI) must each be less than $48,340 ($53,930 married filing jointly) with three or more qualifying children; $45,007 ($50,597 married filing jointly) with two qualifying children; $39,617 ($45,207 married filing jointly) with one qualifying child; or $15,010 ($20,600 married filing jointly) with no qualifying children; and
Whereas, In addition, investment income must be $3,450 or less for the year; and
Whereas, In 2017, the maximum credit is $6,318 with three or more qualifying children; $5,616 with two qualifying children; $3,400 with one qualifying c...
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