Millions of California’s low-income workers qualify for a tax credit that will help their families be able to pay for basic needs, but more often than not, they don’t know this credit exists.
That’s why we need the California Legislature and Governor Newsom to continue the funding for outreach and education.
The California Earned Income Tax Credit, the CalEITC, is one of California’s most effective tools to help alleviate poverty and put money back in the pockets of low-income workers. This year alone, it’s expected to return one billion dollars to our lowest paid workers, many of whom continue to perform essential jobs in the face of a pandemic.
Education and outreach efforts over the four years that the CalEITC has been in effect resulted in millions of Californians accessing not only this state tax credit, but also its federal counterpart. This has put billions of dollars in the pockets of Californian’s who need it most and who spend it right in their own communities supporting local businesses.
But the state grant funding designated for critical education and outreach for the CalEITC is at risk. So are the grants that fund services to help people file their taxes for free rather than having to pay for-profit companies for this help.
Tell Sacramento that we need this funding to help low-income workers!
Protecting this funding is smart economics — families that receive the CalEITC spend that money on life’s basic necessities like food, clothes, and rent. That spending stimulates local economies, generating increased tax revenues that support critical local services.
We need your voice to make sure that this funding is included in the state’s budget that is being finalized in Sacramento.
Please join us in urging the California Legislature and Governor Newsom to maintain funding for these critical education and outreach grants that will ensure the CalEITC’s success.
Sign on now!
Continue the funding for CalEITC Education and Outreach and Free Tax Preparation
Please continue to fund the CalEITC Education and Outreach and Free Tax Preparation Assistance grants at $10 million in the 2020-2021 state budget.
The California Earned Income Tax Credit (CalEITC) is one of California’s most effective tools to help alleviate poverty and stimulate local economies. As our state grapples with the COVID-19 recession, it is even more critical to help low-income individuals and households file their taxes and claim their refund.
Reaching CalEITC-eligible workers with timely, culturally diverse messages in multiple languages — in partnership with trusted community voices — is essential to maximizing the program’s impact for families struggling to meet their basic needs. Access to free tax preparation services also give the lowest paid workers in our economy an alternative to paying the exorbitant fees charged by for-profit tax preparers. And the need is only increasing.
Hundreds of thousands, if not millions, of Californians will be newly eligible for a CalEITC refund next year due to lost jobs, work hours, or income. Every California worker deserves to receive the cash they have already earned. These outreach grants help ensure they know it’s there for them.
The investment in Education and Outreach and Free Tax Preparation Assistance not only puts money in the pockets of low-income workers, but it also stimulates local economies. For every EITC dollar spent, it creates $1.58-$2.00 in economic activity. The outreach money has also helped Californians draw down millions more in federal EITC dollars –an increase of more than $400 million over what Californians claimed four years ago!
Please fight for the inclusion of this money in the 2020-21 State Budget to put much needed money in the pockets of vulnerable Californians.