WHEREAS, The earned income tax credit is one of the most effective tools to lift families and children out of poverty. Last year, California took a momentous step forward on behalf of the working poor by joining 26 states and the District of Columbia by establishing the state’s earned income tax credit (CalEITC); and

WHEREAS, With hundreds of millions of dollars allocated for working Californians, qualifying families will receive the CalEITC refund, providing more in their pockets to support basic needs. In its first year, CalEITC boosted the income of nearly 400,000 Californians, providing nearly $200 million in refunds. In California alone, an estimated $2 billion of state and federal EITC has not been used. This significant resource will help the working poor bring economic security to their lives by supporting costs, including, but not limited to, food, housing, health care, education, and transportation; and

WHEREAS, In addition to providing economic security, CalEITC can have a positive impact on the overall wellness of California families, especially children. Tax credits are associated with better overall outcomes of a child’s health and education. Children whose families receive a boost in income from EITC perform better in school, making them more likely to finish high school, pursue higher education, and have higher earnings as adults; now, therefore, be it