Tax cuts for the poor.Byline: The Register-Guard
A new report that says Oregon's working poor are being hit harder by state income taxes than families with similar incomes in other states adds impetus Impetus is a stimulus or impulse, a moving force that sparks momentum.
Impetus may also refer to:
The Center for Budget and Policy Priorities, a national think tank that examines how public policies affect low and moderate-income individuals and families, lists Oregon among the handful of states where the working poor owe at least $200 in state income taxes.
The CBPP CBPP
see contagious bovine pleuropneumonia. analysis found that:
A two-parent family of four with income at the poverty line - $20,615 in 2006 - can expect to pay about $319 in state income taxes, the fifth-highest in the country.
The same size family earning 25 percent more than poverty-level wages, or $25,769, will pay about $832 in state income taxes - the third-highest state income tax for low-income families.
The income tax on a low-income family of three earning 25 percent more than poverty-level wages for the 2006 tax year is $511, also third-highest in the nation.
The CBPP's findings make a strong case for two bills under consideration in the Oregon House of Representatives The Oregon House of Representatives is the lower house of the Oregon Legislative Assembly. There are 60 members of the House, representing 60 districts across the state, each with a population of 57,000. The House meets at the Oregon State Capitol in Salem. that would eliminate state income taxes on most poor Oregonians. Both bills ease the tax burden on the poor by increasing Oregon's earned income credit Earned Income Credit
A tax credit for low-income workers, even if no income tax was withheld from the worker's pay.
This credit varies with family size, income and the number of children. from 5 percent to 12 percent of the federal EIC EIC Editor-In-Chief
EIC Euro Info Centre (DIN)
EIC Earned Income Credit
EIC Excellence in Cities (UK)
EIC Enterprise Interaction Center (Interactive Intelligence) .
House Bill 3023 offers faster relief, increasing the credit to 12 percent by next year. The other measure, House Bill 2398, phases the increase in over the next five years until it hits 12 percent in 2012.
Tax relief for the working poor through the EIC is one of the most effective ways to provide direct assistance to struggling families. Studies consistently show that the money returned to poor individuals and families through the EIC is spent on sustenance Sustenance
goat who provided milk for baby Zeus. [Gk. Myth.: Leach, 41]
food of the gods; bestowed immortal youthfulness. [Gk. Myth. needs such as food, clothing, transportation, child care and housing.
Preliminary estimates by the nonpartisan non·par·ti·san
Based on, influenced by, affiliated with, or supporting the interests or policies of no single political party: a nonpartisan commission; nonpartisan opinions. Legislative Revenue Office predict HB 3023 would reduce state tax collections by $31 million in the 2007-09 biennium bi·en·ni·um
n. pl. bi·en·ni·ums or bi·en·ni·a
A two-year period.
[Latin : bi-, two; see bi-1 + annus, year; see at- and $51 million in the following two-year cycle. The phased approach of HB 2398 would cut state revenues by $19 million in 2007-09.
Reducing tax collections in order to return the money to the individuals and families who need it most is among the simplest and most effective anti-poverty programs a state can adopt. The sooner the money makes it back into the empty wallets of poor Oregonians, the better. The House should pass HB 3023.