BOSTON – State Sen. Benjamin B. Downing, D-Pittsfield, has joined with several of his senate colleagues in advocating for doubling the Commonwealth’s Earned Income Tax Credit, currently 15 percent of the computed federal credit, a move Gov. Charlie Baker has advocated since his gubernatorial campaign last fall.
According to the Massachusetts state website, the credit is available to certain low-income individuals who have earned income and meet certain federal requirements for the federal earned income credit.
Downing, whose Berkshire, Franklin and Hampshire District is far and away the largest in the senate and includes the hilltowns of Blandford, Chester and Huntington, said that the program will do well to continue rewarding working Bay Staters.
“The EITC is something the federal government has been doing for several decades. At one point, Presiden Reagan called it the best job program in the history of government,” said Downing. “It provides an additional boost for families that are working but, in many cases, are below or slightly above, the poverty level.
“It provides an additional incentive for work, to make sure that the support we provide for families that fall on hard times isn’t greater than the support for those who are working hard and playing by the rules,” he said.
Downing touted the legislation at the State House Tuesday with state Rep. Marjorie Decker, D-Cambridge, and state Sen. James Eldridge, D-Acton, as well as representatives of a nonprofit organization at Boston Medical Center, Children’s HealthWatch.
Currently, the four counties of western Massachusetts are among the most impoverished in the Commonwealth and Downing believes that, by expanding eligibility and increasing the income limit for residents to qualify for the tax credit, the legislation would benefit residents of cities such as Westfield, Holyoke and Pittsfield.
“If you look at the poverty rate in Massachusetts over the last five years, the average in the state has been about 11.5 percent. All four counties in western Mass. are above that,” said Downing, listing Hampden and Franklin Counties as the highest and lowest in western Mass., at 17.5 and 12 percent, respectively.
“Certainly, poverty is a bigger issue in western Mass. than it is in other parts of the state and we need to take a multi-pronged approach to address that, with both short- and long-term targeted investments and support through the tax code,” said Downing. “Doubling the earned income tax credit would help over 450,000 filers accross the state, most of whom live in small cities in western Massachusetts.”
Downing hopes an increase would provide a “shot in the arm” to the state’s working poor.
“We’ve seen job growth. We haven’t seen wage growth and this would help on the wage side of things,” he added.
“Charlie had talked about this on the campaign trail last year when we were talking about raising the minimum wage,” said Sen. Don Humason, Jr. “It can help poor people without impacting businesses and it will get the impact you’re looking for, but I’m glad to see that leadership supports it and we’ll see what happens. At least we’ll get to debate it.”
“In my remarks on swearing-in day, I urged the Senate to join with the governor to review and revise, or increase, the earned income tax credit,” said Sen. President Stanley Rosenberg, D-Amherst, yesterday. “We have yet to have that conversation but I’m hoping the Senate will embrace it and that we and the governor can work together.”
Sen. Minority Leade Bruce Tarr, R-Gloucester, said he proposed similar legislation several times during the last legislative session and believes the tax credit to be “an incredibly powerful tool.”
“It can help low wage earners and I think we need to have that kind of a well-rounded portfolio,” said Tarr. “If we don’t have things like that, we wind up relying on things like the minimum wage when it can’t do the whole job. I think we need it as a tool and that it’s long overdue.”
“I think it is a great use of state tax policy and I think we’re going to pass it and soon,” he said.
