Archive for March, 2010

The EITC Supports Hardworking Oregonians and Boosts Oregon’s Economy

Posted by Joy_Hunt in Asset Building on March 25th, 2010

Over the past year, Neighborhood Partnerships has worked with Oregonians for Working Families and Oregon Thrives to encourage Oregon legislators to expand our state’s Earned Income Tax Credit (EITC). We want to expand the tax credit because it has a track record of successfully helping families who are struggling to make ends meet. In 2009 the EITC lifted over six million people in the United States out of poverty including more than three million children. It lifted more children out of poverty than any other single program or category of programs. The EITC is widely seen as one of the largest and most effective wage support programs for low and moderate income families.

In spite of its importance for low and moderate income workers, millions of eligible workers miss out on the EITC each year because they do not know they qualify, do not know how to claim the credit or do not know where to find free tax filing assistance. Your outreach efforts can ensure that eligible workers receive the tax credits they’ve earned. As tax season is upon us, please help spread the word about Oregon’s free tax preparation sites.

What is the EITC?

The EITC is a tax credit for low and moderate income working people. It is designed to supplement the earnings of low and moderate income workers by reducing their tax burden. In addition, the EITC is refundable, which means if the credit is greater than the amount of taxes owed the taxpayer receives a refund. Because the credit has a track record of successfully combating poverty, 24 states—including Oregon—have established state EITCs to enhance the federal credit.

A recent study found that nearly half of all families with children will receive the EITC at some point. In addition to reducing poverty, the EITC is an immediate economic stimulus. Research shows that families use the EITC to pay for necessities, repair homes, maintain vehicles needed to commute to work, and in some cases, pursue additional education or training to boost their earning power.

The amount of the credit depends on both the amount of earned income and the number of qualifying children in the household. For tax year 2009, the EITC can be as much as $5,657 for households with three qualifying children; phasing out at roughly $48,000 AGI (Annual Gross Income).  The IRS website has a tool that allows you to determine whether or not you are eligible for the EITC

Expansion

In partnership with Oregonians for Working Families, Neighborhood Partnerships continues to advocate for an expansion of the state EITC.  We have called on the state to increase the value of Oregon’s credit to 18% of the federal credit. In addition, the national organization CFED has also . Expanding the EITC will help low income working Oregonians with children afford housing, food and other necessities.  Too many Oregonians are struggling to make ends meet, and expanding the state credit will help lift more Oregonians out of poverty.

Help Spread the Word Today

Please take some time to plan on how you can get the word out to your friends, neighbors and colleagues who may be EITC eligible. By working together we can help spread the word about free tax preparation services and the EITC to more Oregonians than ever.

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Archive for March, 2010

February’s Whirlwind Legislative Session

Posted by admin in Housing, News on March 16th, 2010

The short February legislative session was a whirlwind of activity. Neighborhood Partnerships was active in the session in partnership with the Housing Alliance as well as in support of the issue priorities we identified with our partners in Oregon Thrives.

The Housing Alliance members had a very short list of priorities going into the session, and all made it successfully through session. One is still awaiting a signature by the Governor.

  • SB 1013 protects tenants living in foreclosed properties. This bill cleared up some technical issues in the bill passed in 2009.
  • SB 1015 extends the sunset date on a statute enabling local governments to provide property tax exemptions to non-profit owned multi-family affordable housing, and provides clearer legal authority for some existing property tax exemptions in Multnomah County.
  • HB 3640, once it is signed by the Governor, will provide personal property tax relief to owners of manufactured homes valued at less than $12,500 in the four largest counties in the state—Multnomah, Washington, Lane, and Clackamas.

Oregon Thrives allies worked hard to build momentum for an expansion of Oregon’s Earned Income Tax Credit, or EITC. Janet Byrd of NP presented testimony in support of the expansion, which would put money back into the budgets of low income working households statewide, and help them better weather financial stresses. Janet also testified in support of the Oregon Hunger Task Force’s new plan to end hunger in five years.  That report calls out financial asset building, among other strategies, as a key policy to end hunger.

The legislative focus will turn now to 2011. Candidates have all filed now for state and local races, and are gearing up for the primary election on May 18, 2010. Be sure to ask your legislative candidates what they plan to do to create opportunity in Oregon!

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