A bipartisan proposal introduced last week in the House Revenue Committee would accomplish that worthy goal by more than doubling the value of Oregon's
earned-income tax credit, a tax break designed to help low-income families with child- ren.
18 to win legislative approval of a state
earned-income tax credit for low-income workers.
President Clinton proposed expanding the
earned-income tax credit, which provides an annual payment to 19 million working families at or near the poverty line.
The Congressional Budget Office estimated that with the average tax rate paid for all federal taxes in 1988 - before further increases in the top income tax rate, Medicare payroll taxes and the
earned-income tax credit, all of which increased progressivity - the top 10 percent of earners faced an average tax rate more than twice that of low earners, while the top 1 percent faced more than triple that rate.
And the
earned-income tax credit, one of the best benefits for the working poor, was cut by $5 billion.
Right now, we're deeply involved in legislative battles as diverse as welfare reform, land mines, and the
earned-income tax credit.
The
earned-income tax credit can take a bite out of your tax bill.
Rather, the IRS has been pushed by the Republican-controlled Congress to catch cheaters who abuse the
earned-income tax credit, a Ronald Reagan initiative to help the working poor get off welfare.
The House Ways and Means Committee endorsed a $23 billion cut in the
earned-income tax credit for low-income families.
Mahony said the state should create its own
earned-income tax credit and income-tax credit for poor children.
For example, the working poor qualify for tax subsidies through a federal program called the
earned-income tax credit.
He also favors establishment of a state
earned-income tax credit for the middle class that would amount to a 13 percent tax cut for individuals earning $60,000 or less or families with a combined income of $100,000 or less.
