Working Family Tax Credit rewards hard work for low pay

As the Hawaiʻi Appleseed Center For Law & Economic Justice points out, the Working Family Tax Credit goes only to people who actually work and earn low wages. That makes it a great incentive to stay employed because with the credit, more of what is earned is kept by the worker. The credit increases for those with children to alleviate poverty among our keiki—and who does not want to help our keiki?

More broadly, the credit is a boon to the local economy because low-income earners typically spend all of their dollars locally to meet basic needs. This is a bill that is as good for businesses as it is for the working poor, and businesses should let our legislators know that they welcome it.

A recent poll shows 81 percent of the Hawaiʻi community supports the Working Family Tax Credit. If enacted this year, 11,000 low-income families will see a state income tax bill of zero, allowing monies that otherwise would go to pay taxes to instead purchase food, rent and gas.

We all agree self-sufficiency is better than merely depending on handouts. We all agree that a willingness to work should be encouraged. Let’s further both by passing, this legislative session, the Working Family Tax Credit. The Renters’ Credit and Food (GET) Credit would also help.