Minnesota likely to see progress on tax goal while Congress punts

REUTERS/Yuri Gripas
President Obama's budget calls for doubling the value of the Earned Income Tax Credit for some beneficiaries.
Current law and White House's proposed childless worker EITC parameters
Current lawProposal
Phase-in rate7.65%15.3%
Phases in up to$6,570$6,570
Maximum credit$503$1,005
Phase-out rate7.65%15.3%
Phase-out starts*$8,220$11,500
Phase-out ends*$14,790$18,070
*Under both current law and the proposal, levels are $5,500 higher for married filers.
State EITC spin-offs
% of Federal EITC
Maryland25/50
Wisconsin4–34
Minnesota33 (avg.)
Vermont32
New York30
Connecticut25
Rhode Island25
Virginia20
Delaware20
New Jersey20
Kansas17
Massachusetts15
Iowa14
Washington10
Colorado10
New Mexico10
Nebraska10
Illinois10
Indiana9
Oregon8
Michigan6
Oklahoma5
Ohio5
Maine5
Louisiana3.5
Source: Stateline

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Comments (1)

  1. Submitted by Ron Gotzman on 03/08/2014 - 10:42 am.

    news or opinion?

    WOW! This is one of the most partisan, political, campaign type articles I have read in a long time. Is this a news article or an opinion piece?

    David – please just use the phrases “redistribute the wealth” or “spread the wealth around” or ”buy more votes” through the manipulation of the tax code instead of the “working families “ and “progress” type code words. So if you are in favor of tax breaks for those who pay taxes – that is anti –progress?

    Concerning the federal tax code, you could also say that we need to “tax the rich more” so we can give “tax breaks” to those who do not pay income taxes?

    What is needed is to eliminate the income tax and promote a national sales tax with generous exemptions. We need more tax payers – not fewer tax payers carrying the load.

    With a national sales tax it would also HELP eliminate the political nature and complexity of the current tax code used to buy votes or pit one group against another. There are many other advantages as well.

    No mention of the deficit? You must be a” deficit hawk” in the Eric Black mode?

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