Democrat’s Tax Break for Low-Wage Earners Would Be Second in Two Years

From NJ Spotlight, March 8, 2016:

The push by a key Democratic lawmaker to increase New Jersey’s version of the Earned Income Tax Credit for the second time in less than a year comes as state tax collections have continued to rebound in the wake of the recent recession, and as tax breaks for businesses have also been expanded several times by the Christie administration.

In testimony provided to the committee yesterday, Brandon McKoy, a policy analyst at New Jersey Policy Perspective, a liberal think tank based in Trenton, said the tax credit also makes a real difference for New Jersey families in danger of slipping into poverty.

“The extra dollars that these low-wage workers and their families receive each year help keep many of them out of poverty,” he said.

The proposed increase would also provide a benefit to the broader state economy, which still has not recovered all of the jobs lost to the recession, McKoy said. “The EITC is a direct shot in the arm for local economies, since families tend to spend these tax credits immediately and locally on short- to medium-term needs like buying clothes for their family, repairing the family car, replacing household items like furniture, or catching up on past-due rent or utility bills,” McKoy said.