BILL NUMBER: SCR 92	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Liu

                        MARCH 23, 2010

   Relative to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SCR 92, as introduced, Liu. Taxation.
   This measure would urge community organizations and local
government entities to promote education and awareness of the Earned
Income Tax Credit and other tax credits that help working families
persevere through difficult economic times.
   Fiscal committee: no.



   WHEREAS, The Congress of the United States enacted the Earned
Income Tax Credit (EITC) in 1975 to offset the burden of social
security taxes on low-income taxpayers, to supplement wages, and to
encourage work; and
   WHEREAS, Since its enactment in 1975, the EITC has brought
millions of families above the poverty level and has had a high
participation rate relative to other programs for low-income
Americans; and
   WHEREAS, The EITC has been expanded by a series of Presidents of
the United States, including both Democratic and Republican
presidents; and
   WHEREAS, Working California families may be missing out on a
federal refund of up to five thousand six hundred fifty-seven dollars
($5,657) because they are not aware of the EITC and other working
family-tax credits, such as the Child Tax Credit, the Child and
Dependent Care Credit, and the Making Work Pay Credit; and
   WHEREAS, According the Internal Revenue Service (IRS), up to one
in four eligible taxpayers may fail to claim the EITC because they
are not aware of the credit or of free assistance to claim the
credit; and
   WHEREAS, The EITC is available to taxpayers who work, but do not
earn high incomes and may often struggle to make ends meet. These
taxpayers could be missing an opportunity to pay less federal income
tax, pay no federal income tax, or receive a refund; and
   WHEREAS, New parents, grandparents raising grandchildren, and
foster parents may not realize they qualify for the EITC. Some
families, such as those in the military and those raising children
with disabilities may not realize that there are special rules that
may help them quality for the EITC; and
   WHEREAS, The IRS and other organizations collaborate with local
agencies to offer Volunteer Income Tax Assistance (VITA) to raise
awareness of the EITC; and
   WHEREAS, The IRS and its partners provide tools to local agencies
to link financial education and other asset-building efforts, such as
individual development accounts; and
   WHEREAS, The IRS and the Congress of the United States have taken
steps to reduce the EITC's error rate and simplify the filing of the
credit; and
   WHEREAS, Employers, at no additional cost to themselves, can
increase the take-home pay of their employees if their employees
utilize the EITC; and
   WHEREAS, The EITC increases revenue in the community and has a
substantial impact on the California economy; and
   WHEREAS, A recent study estimated that 800,000 Californians will
fail to claim one billion two hundred million dollars
($1,200,000,000) in EITC refunds in 2009 and that California business
will lose out on one billion four hundred million dollars
($1,400,000,000) in sales and 8,200 jobs will not be created as a
result; now, therefore, be it
   Resolved by the Senate of the State of California, the Assembly
thereof concurring, That the Legislature urges community
organizations and local government entities to promote education and
awareness of the EITC and other tax credits that help working
families persevere through difficult economic times; and be it
further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the author for appropriate distribution.