Working families need more relief
Among the groups poised to testify today, Hawaiʻi Appleseed Center for Law & Economic Justice, gave enthusiastic support for some proposed tax changes.
One was making the earned income tax credit refundable, meaning that qualifying taxpayers receive the full amount of the credit, regardless of their actual tax liability. Also, the sunset for the credit has been eliminated so that it will be an enduring benefit.
In addition, the credit for the excise tax paid on food was already refundable but the bill would increase the maximum to $150 per exemption.
The problem is that it would zero out once income reaches $30,000 annually, according to Appleseed testimony, which would cut many people in need out of that benefit. The organization rightly gave preference to existing law, which instead phases out the credit gradually as earnings increase.