Sunday, December 4, 2022
Hawai'i Free Press

Current Articles | Archives

Friday, January 22, 2016
Low Income Tax Relief: Hawaii Earned Income Tax Credit
By Selected News Articles @ 8:14 PM :: 5268 Views :: Republican Party, Taxes

Fact Sheet: The Earned Income Tax Credit

From Rep. Beth Fukumoto Chang House Minority Leader January 22, 2016

The federal Earned Income Tax Credit (EITC) is a refundable tax credit that can be claimed by people with low-wage jobs (it doesn't apply to unemployment benefits or other assistance). Currently, 26 other states and the District of Columbia have implemented a state EITC to enhance the benefits of the federal EITC credit. Hawaii currently does not have a state EITC; however, the Republican Caucus is proposing one this year.

How the EITC works 

  • The EITC reduces the amount of taxes an individual or couple filing jointly has to pay. 
  • State EITCs increase the benefit mount. 
  • In 2016, the federal EITC applies to single filers earning no more than $14,880 and joint filers earning no more than $53,500. 
  • The EITC is structured so that the credit is provided to those who need it the most:

--Joint filers qualify for a higher credit than single filers.

--Dependent children increase the credit.

--The credit decreases with higher wages. 

  • If the credit amount exceeds a person's or couple's tax liability, the difference is paid back in a refund check.

How a State Earned Income Tax Credit would help Hawaii

  • A 10% state EITC would help make the state's taxes less regressive. Low-income earners pay a higher percentage of their income in taxes when factoring in both income taxes and the general excise tax applied to necessities, according to the nonpartisan Institute on Taxation and Economic Policy. The lack of a state EITC is listed as a regressive feature. 
  • The Hawaii Appleseed Center for Law and Economic Justice said that a 10% state EITC in Hawaii would help 309,060 people, including 127,018 children, and help put $24 million into the economy. 
  • A state EITC would help low-income families keep more of their money for basic needs, including transportation and child care, which may be critical to keeping them working.

Click here to read more about the Republican Caucus' plan to help reduce income taxes for residents with low-income jobs >>> Tax Credit Fact Sheet

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT