Community, Legislators Urge Tax Relief for Illinois Families

Lawndale News Chicago's Bilingual Newspaper - Business

Lawndale News Chicago's Bilingual Newspaper - Business

By: Ashmar Mandou

Legislators alongside families and advocates rallied outside of Daley Plaza on Monday morning to urge the State of Illinois to adopt a tax cut program for low-income workers and families. “The COVID-19 pandemic disproportionately impacted working families in Illinois. The federal government and we in state government worked to support our communities in need with rental and mortgage assistance, among many other programs, but we need to do more. The Earned Income Credit will put money in working-class people’s pockets. It’s their hard-earned dollars that will support their day-to-day needs,” said State Senator Omar Aquino, chief sponsor of SB3774.

Supporters backed SB3774, a bill that would expand the state’s existing Earned Income Credit (EIC) to certain ineligible workers and create a new state Child Tax Credit. According to the Economic Security for Illinois, the proposal would benefit more than 4.8 million families, including nearly two million children. SB3774 and HB4920 would expand the Illinois’ Earned Income Credit (EIC) and respond to the financial need many low-income families feel by offering a tax credit, amounting to an average of $600 or more in a refund, stated Sen. Aquino.

The current state EIC offers income tax relief to most workers earning less than $56,000 per year and would total up to $1,200 in a tax return. SB3774 / HB4920 would expand Illinois’ Earned Income Credit to include 1.2 million Illinoisans who are currently ineligible for the refund—namely, childless workers aged 18-24 and over age 65, as well as immigrants who file taxes with an Individual Taxpayer Identification Number (ITIN). It would also create a statewide Child Tax Credit of at least $600 for parents or legal guardians of children under 17.

Finally, over three years, it would increase the credit amount from the current 18 percent match of the federal EITC to 25 percent, offering hundreds of dollars more each year to families who need it. According to an independent report from the Center for Tax and Budget Accountability, spending EIC and CTC would create $1 billion local and statewide economic benefits.

“Illinois has a once-in-a-generation opportunity to rebuild an economy that works for all. We must build upon what works — putting money in people’s wallets — to ensure everyone can recover and thrive in the wake of the pandemic. Our communities cannot wait for this relief and that’s why I am urging my colleagues and the Governor to support an expansion to Illinois’ Earned Income Credit today,” said Representative Carol Ammons, chief sponsor of HB4920.

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