DC gives a financial incentive to some residents through the Earned Income Tax Credit (EITC), which eases taxes for low-income workers. But right now the credit provides very little benefit to a large group of low-income workers: singles without children. A tax commission has recommended including childless singles in the EITC, and DCFPI strongly endorses that.
For District residents in low-wage jobs, making work pay is important. We live in an expensive city, where $8.25 or even $11.50 per hour doesn’t go very far in paying for housing, transportation, food, and other necessities. That’s why DC gives an incentive to working residents through the Earned Income Tax Credit (EITC), which eases taxes for low-income workers. But right now the credit provides very little to a big group of workers: singles without children.
The DC Tax Revision Commission (DCTRC) recognized this gap and recently endorsed an expanded EITC that increases benefits to low-wage workers without children, a group which is ineligible for many other public benefits. DCFPI enthusiastically supports this recommendation. We hope that Mayor Gray and the DC Council will fund this important tax credit in the upcoming budget.
Making the EITC work for childless households will provide a boost to the pay of these residents, as well as to our local economy, because most of these dollars will go right back into local businesses.
Read more about it.