Arizona doesn’t have an Earned Income Tax Credit (EITC), which mostly gives straight cash to those who don’t earn enough money to obtain a state tax refund, but Gov. Doug Ducey wants to change that. He is supporting SB 1018, sponsored by State Senator Sean Bowie (D-Phoenix), which would create one, joining 30 other states which have adopted one patterned after the federal EITC.
A state EITC would take $74 million from the state’s coffers annually and give it to low earners. In order to qualify, income levels would face the same ceilings as the federal credit. Both families and singles are eligible, with a family of four children earning $20,000 maxing out the most with $325.
Critics say the EITC does little to alleviate poverty or help low-income workers. Timothy Jeffries, owner/CEO of ChemResearch Company, the largest metal finishing provider for aerospace and defense in Arizona, who previously served as director of the Arizona Department of Economic Security under Gov. Doug Ducey, told The Arizona Sun Times, “The legislation for an Earned Income Tax Credit in Arizona is well intended, but off the mark. Various studies and sources clearly highlight the existence of an EITC does not tangibly reduce poverty and actually can provide a disincentive to work. Government social programs have a role to play in our country, but expanding them does not serve our country well. People need good jobs, not more handouts.”
Read the rest of the story at The Arizona Sun Times
