On January 26th, 2011, at 2:00 pm Eastern, Peer TA hosted a Webinar on TANF and EITC: Creating Additional Opportunities for ARRA Funded Subsidized Employment Participants. Although ARRA funding has ceased, State and local TANF agencies have an opportunity to provide additional support to their subsidized employment participants. Their subsidized employment participants may be eligible for the Earned Income Tax Credit (EITC), recognized as one of the most successful anti-poverty efforts in U.S. government history. This Webinar discussed how EITC and free tax filing at VITA sites can help TANF participants improve economic self-sufficiency and generate a positive economic return on the local economy; how TANF agencies have an opportunity to provide additional support to participants in ARRA funded or non-funded subsidized employment programs; and low-cost ways to connect participants to free tax preparation and services.

Abstract: Using Internal Revenue Service (IRS) data in an input-output (IO) model, this paper assesses the economic impact and foregone economic impact of the Earned Income Tax Credit (EITC) in the 58 counties in California in 2006, the most recent year for which data are available. Findings show EITC payments received by California residents contributed over $5 billion in output and nearly 30,000 jobs to the state economy in 2007. The foregone economic impact of unclaimed payments is substantial as well. Foregone claims are estimated to total $1.1 billion in 2007. If claimed, the payments would have contributed $1.2 billion in output and 7,500 jobs to the state economy. This foregone impact was likely 20% to 25% higher during the year 2010, due to the recession and accompanying legislation. The foregone economic impact is not spread uniformly across counties, but is more acute in counties where the presence of likely nonclaimants is higher. Revamping and increasing efforts to increase the participation rate in the federal EITC program is probably a cost effective policy approach in terms of labor force participation and poverty reduction per state tax dollar spent. Please note that in order to download and access this paper, there is a financial cost to the requestor.

The U.S. Department of Labor released a report that includes the findings of a multi-year study of the impact of the Unemployment Insurance program in stabilizing the economy during a recession. Completed by IMPAQ International LLC and the Urban Institute, this report includes information on the UI benefits from 2008 to 2009 in the context of the current recession.

From Disability.gov, this Web page includes new resources on the Earned Income Tax Credit, which includes online training, frequently asked questions about the EITC, Webinars, trainings, and other resources on the EITC.

Savings accounts that are started when children are born can allow parents to build savings to pay for college, home ownership, and businesses. This report is from the Center for Social Development, the Corporation for Enterprise Development (CFED), the Initiative on Financial Security at the Aspen Institute, the New America Foundation and the University of Kansas’ School of Social Welfare, and presents results from research on families who participated in child development account pilot programs in 12 states and communities.

The Peer TA Network provided technical assistance to Georgians for Prosperity (G4P), a committee dedicated to advancing awareness and participation in the EITC. G4P was created in October 2009. Subsequently, the Peer TA Network helped G4P bring together representatives from community-based organizations, foundations, local businesses, faith-based organizations, financial institutions, schools, and Community Action Agencies, as well as representatives from the Internal Revenue Service, the U.S. Department of Health and Human Services, and the Georgia Department of Human Services, for an EITC/Asset-Building Statewide Coalition Meeting that took place in Savannah on June 28-30, 2010. The meeting served as a way for participants to share information about the EITC and other asset-building programs; foster peer-to-peer learning; highlight promising practices on EITC outreach and free tax preparation from around the country; provide helpful tools for launching an EITC/asset-building campaign; develop a Statewide marketing campaign to promote such services; and facilitate the development of local and regional action plans for immediate implementation. Through this meeting, GA4P hopes to bolster efforts at establishing community partnerships, enhancing outreach, and, ultimately, improving access to the EITC and free tax filing assistance for low-income residents.

The Harvard Ash Center for Democratic Governance and Innovation hosted a webinar on the impact of asset-building strategies on reducing poverty and supporting low-income families. Speakers from asset-building programs around the country presented lessons learned on supporting families in wealth creation, asset development and small business entrepreneurship.

This report is from the Center on Budget and Policy Priorities, and provides key information on how state income taxes influenced low-income families. In some states, state taxes further push low-income working families into poverty; however, in other states, low-income working families can receive significant tax refunds through programs like the Earned Income Tax Credit. Specifically, 21 states have been able to reduce poverty for low-income families with children through the tax code.

From the Institute for Research on Poverty and researchers at Columbia University, this article provides information on the status of low-income men. Since the mid-1970s, wages and labor force participation has been decreasing for young, lesser educated men. In this piece, authors examine how key income-security policy areas, including unemployment insurance, payroll taxes and the Earned Income Tax Credit, and child support enforcement, affect this population.

This report includes data on 831 homebuyers in 17 states who purchased homes using Individual Development Accounts (IDAs) between 1999 and 2007. Data show that low-income homeowners who participated in programs that used IDAs to purchase homes were two to three times less likely to lose their homes to foreclosure. Additionally, IDA homebuyers were able to obtain significantly preferable mortgage loan terms.