Tax Bill a Major Victory for Low-Income Working Families

WASHINGTON–(BUSINESS WIRE)– Bread for the World applauds the passage of a compromise tax package that extends key tax credits for low-income working families. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010prevents low-income working families from seeing their current Earned Income Tax (EITC) and Child Tax Credits (CTC) reduced or eliminated.

“People of faith may not agree with all of the provisions of the bill, but these low-income tax credits are a huge victory for working families,” said Rev. David Beckmann, president of Bread for the World. “The EITC and CTC, along with the payroll tax deduction, will prevent 2.4 million people, including 1.2 million children, from falling into poverty.”

The EITC is America’s largest anti-poverty program. In 2009, it is estimated the EITC lifted 6.6 million people, including 3.3 million children, above the poverty line. Refundable tax credits, such as the EITC and CTC, provide some of the strongest forms of economic stimulus, generating $1.26 of economic growth for every additional dollar in benefits. Households spend these tax credits quickly and in their local communities.

“This is a big win for Bread for the World members who have been advocating for these tax credits all year as part of our 2010 Offering of Letters campaign,” added Beckmann. “It is a remarkable achievement for Bread and a Christmas blessing for low-income working families.”

The $858 billion bill will extend tax cuts for families at every income level, renew jobless benefits for the long-term unemployed, and provide a new one-year cut in Social Security taxes that would benefit almost every worker who earns a wage. The bill now goes to President Obama for his signature.

Bread for the World (www.bread.org) is a collective Christian voice urging our nation’s decision makers to end hunger at home and abroad.

Bread for the World
Racine Hamilton
office: 202-688-1138
cell: 301-922-8417
rhamilton@bread.org
orKristen Youngbloodoffice: 202-688-1118
cell: 202-423-7379
kyoungblood@bread.org

Source: Bread for the World