State lawmakers are talking about boosting the earned income tax credit. “What the earned income tax credit does is help low-income earners keep more of the money that they earn, and put in the pocket of those who are earning very, very little a little extra cash so that they can actually make ends meet,” State Rep. Barbara Flynn Currie (D-Chicago), one of the supporters, said at a news conference in the Capitol.
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The plan is to boost the Illinois earned income tax credit from 10 percent of the federal credit to 20 percent, in 2-percentage-point increments over the next five years. The phase-in is because this will have some effect on state tax collection.
State Rep. Sam Yingling (D-Grayslake) says it’s good for business too. “We know that when lower-income families have more money, they will dispose of it into the local economy,” he said, citing the experience of his family’s restaurant.
Bills have been introduced in the House and Senate: H.B. 2458 and S.B. 676.