Richmond, Virginia—Hardworking families across the Commonwealth are disappointed as Republican members of the House Finance Subcommittee #1 rejected Delegate Marcia Price’s HB1312, a bill to make the Earned Income Tax Credit (EITC) fully refundable. The Earned Income Tax Credit is a targeted tax credit that low-wage Virginians can claim at tax time to reduce what they owe in state income tax. This bill would make it fully refundable, which means that even families who do not owe any taxes can still receive a refund. It’s disappointing that Republican members of the committee voted against a bill that would put money in the pockets of hardworking families in our community.
“We are disappointed but not surprised that Republicans voted against making the earned income tax credit fully refundable. Everyone who works hard should be able to raise a family with dignity. But right now, the rules are rigged against low-income families who struggle to make ends meet while corporations benefit from tax giveaways,” LaTwyla Mathias, Executive Director of Progress Virginia, said. “We should invest in families in our communities and reward responsibility and hard work by making the earned income tax credit fully refundable for Virginia families, and we’ll keep fighting until it passes.”
Making the EITC fully refundable would ensure that 600,000 families have more money in their bank accounts.
Households that make $22,000 per year have an effective tax rate of 9.6%, but households that make at least $587,000 per year have an effective tax rate of just 7%. Making the EITC fully refundable would make this a little more equal.