BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      HR 33


                                                                    Page  1


          Date of Hearing:   January 15, 2016


                             ASSEMBLY COMMITTEE ON RULES


                                    Gordon, Chair


          HR  
                     33 (Atkins) - As Introduced  January 7, 2016


          SUBJECT:  California Earned Income Tax Credit.


          SUMMARY:  Declares January 22, 2016, as California Earned Income  
          Tax Credit Day (EITC).  Specifically, this resolution makes the  
          following legislative findings: 


          1)California enacted its first ever state Earned Income Tax  
            Credit (EITC), based on the federal EITC, last summer as part  
            of the 2015-16 budget which will allow California's lowest  
            income workers to better provide for their families by  
            boosting their 2015 incomes by as much as $2,653.



          2)The state EITC provides a match of up to 85 percent of the  
            federal EITC for California's lowest income workers, a match  
            that far exceeds any other state in the nation.



          3)Research shows that the federal EITC reduces poverty,  
            encourages employment, and boosts local economies. This  
            research also shows the EITC is linked to improved health for  
            mothers and infants as well as better educational outcomes for  
            children.










                                                                      HR 33


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          4)The success of California's EITC depends on policymakers,  
            public agencies, and community leaders ensuring that all  
            households that are eligible for the new credit know about it,  
            learn about it and claim it.  More than $1.8 billion of  
            federal EITC dollars have gone unclaimed in California each  
            year and promoting the new state EITC will boost awareness and  
            claims for the federal EITC, thereby returning federal dollars  
            to California families and local economies.
          FISCAL EFFECT:  None


          REGISTERED SUPPORT / OPPOSITION:


          Support


          None on file


          Opposition
          None on file


          Analysis Prepared by:Nicole Willis / RLS. / (916) 319-2800