IRS encourages people to apply for earned income tax credit, By Rachel McGrath, January 27, 2012, Ventura County Star: “The Internal Revenue Service is urging low- to middle-income earners in Ventura County to find out whether they qualify for a tax credit that could put thousands of dollars into their pockets. The earned income tax credit is intended to help those who work hard but don’t make much money, reporters were told Friday by Verlinda Paul of the IRS. An estimated one in five workers nationwide fail to claim the credit. One of the main reasons Americans don’t apply for the credit is because they don’t know about it, Paul said. The director of the earned income tax credit for the IRS, she spoke to reporters in a conference call. Ironically, many who might be eligible earn so little that they are not required to file a tax return and yet in order to claim the credit, a tax return must be filed and the credit applied for…”

Quinn signs earned-income tax credit, By Sophia Tareen (AP), January 10, 2012, Springfield State Journal-Register: “Legislation aimed at helping poor Illinois families keep more of what they earn was signed into law Tuesday, a month after Gov. Pat Quinn signed companion legislation granting tax breaks and incentives aimed at keeping two big employers in the state. The new law, which is effective for the 2012 tax year, expands the state’s earned-income tax credit. It’s now 5 percent of the federal credit and will climb to 7.5 percent next year and 10 percent the year after. State officials said it would eventually translate to an average of about $100 a year per family. Currently about 900,000 families meet income guidelines in Illinois, but some advocates estimated 1 million will qualify this year…”

Wisconsin one of few states that will raise taxes on poor, By Michael Louis Vinson, December 28, 2011, Appleton Post-Crescent: “As Wisconsinites await W-2 forms and related tax documents, hundreds of thousands of low-income families are bracing for a state budget change that will mean less money in their wallets next year. Last summer, the state Legislature reduced the amount of money low- income families can receive in tax credits by $56.2 million. That places Wisconsin among only a handful of states that will effectively raise taxes on their poorest residents in 2012, according to a recent study by the Center on Budget and Policy Priorities, a nonprofit think tank…”

• Malloy touts new tax credit, By JC Reindl, November 23, 2011, The Day: “Gov. Dannel P. Malloy on Tuesday joined Democratic lawmakers and social services advocates to herald the implementation of Connecticut’s new Earned Income Tax Credit for low- and moderate-income individuals and families. The credit was included in the governor’s biennial budget plan that passed the General Assembly this spring. The cost to the state is a projected $110 million this fiscal year. Twenty-five states and the District of Columbia now offer some type of earned income tax credit. Under Connecticut’s program, the approximately 190,000 state households that are eligible for the federal Earned Income Tax Credit will receive an additional credit equal to 30 percent of the federal one…”
• Taxing the working poor back to starting line, Editorial, November 20, 2011, Detroit Free Press: “As much as younger pensioners may howl about the state income taxes they’ll have to pay come Jan. 1, the hardest hit group of people who file income tax forms may be the poorest — workers whose wages barely bring their families up to the poverty level. That’s because the state’s Earned Income Tax Credit will drop from 20% of the federal payment to 6%. Although this is better than nothing — which, in fact, was what Michigan had until three years ago — it will return the state to the unwelcome status of taxing some people back into poverty…”

• Utah has nation’s lowest ‘income inequality’, By Lee Davidson, October 26, 2011, Salt Lake Tribune: “More than any other Americans, Utahns live among neighbors whose incomes are similar to their own. The rich live with the rich, and the poor with the poor. But the overall range of Utahns’ household incomes is relatively narrow, too, with comparatively few who are exceptionally high- or low-income. That’s according to a report released Wednesday by the U.S. Census Bureau looking at ‘neighborhood income inequality’ between 2005 and 2009…”
• Income inequality lower than average in NW, says Census report, By Jessica Robinson, October 26, 2011, Oregon Public Broadcasting: “New numbers show the gap between the rich and poor has grown across the nation. But income inequality in the Northwest is lower than the national level. That’s according to an analysis released Wednesday by the U.S. Census Bureau. Correspondent Jessica Robinson has more. The report is based on survey data collected between 2005 and 2009 — three years of economic growth, plus two years of recession. It uses three different measurements. And in all of them, Oregon, Idaho and Washington have lower-than-average levels of income inequality. That is, the spread between high wage earners and low wage earners…”
• Top earners doubled share of nation’s income, study finds, By Robert Pear, October 25, 2011, New York Times: “The top 1 percent of earners more than doubled their share of the nation’s income over the last three decades, the Congressional Budget Office said Tuesday, in a new report likely to figure prominently in the escalating political fight over how to revive the economy, create jobs and lower the federal debt. In addition, the report said, government policy has become less redistributive since the late 1970s, doing less to reduce the concentration of income…”
• The rich are getting richer, U.S. study says, By Jim Puzzanghera, October 27, 2011, Los Angeles Times: “The rich got richer over the last three decades - and the very rich got very much richer - according to a new government study. The top 1% of households saw their after-tax incomes grow by 275% from 1979 to 2007, said the study by the nonpartisan Congressional Budget Office. That was more than quadruple the growth of the rest of the top 20% of the population during that period. Meanwhile, income for the 60% of households that make up the middle of the income scale increased by slightly less than 40%, the study found. The poor - the 20% of the population with the lowest incomes - saw just an 18% increase…”

• Improved tax collections can’t keep pace with states’ fiscal needs, survey finds, By Michael Cooper, June 2, 2011, New York Times: “Half the states plan to cut spending on higher education, and nearly a third plan cuts to elementary and high schools. Public assistance and transportation face cuts. Eighteen states have proposed slashing aid to struggling cities and local governments. Some states will raise taxes or fees. Others plan to lay off workers, or cut their salaries or benefits. Although state tax collections are picking up after several brutal years, a new survey by the National Governors Association and the National Association of State Budget Officers found that states still expect to collect less tax revenue and spend less money in the coming fiscal year than they did before the Great Recession began. At the same time the cost of Medicaid, the biggest single portion of state spending, has been rising, driven up by higher enrollment as many people have lost their jobs and their health insurance…”
• Education, social services are big losers in state budget, By Ray Long and Monique Garcia, May 31, 2011, Chicago Tribune: “Education and social services are the losers under a state budget lawmakers put the finishing touches on Tuesday. The $33.2 billion spending plan is about $2 billion less than what Democratic Gov. Pat Quinn wanted. Spending less was on the minds of many lawmakers after they approved a 67 percent increase in the income tax rate in January that was billed as mostly temporary…”

Tax credits and rural incomes, By Ron Durst and Tracey Farrigan, May 19, 2011, Daily Yonder: “Since 1980, the total cost of tax expenditures has increased by over 250 percent and currently exceeds $1.1 trillion. A primary reason for this growth is that there is greater bipartisan support to enact tax expenditures than to fund or increase direct spending programs, especially since tax expenditures are often viewed as tax cuts. These expenditures have significantly reduced the share of taxpayers who owe Federal income tax. As a result, in 2009, only about half of rural taxpayers owed any Federal income tax. This is slightly below the overall rate of 53 percent of all taxpayers and reflects the lower income levels of rural taxpayers. In 2008, 22 percent of rural taxpayers received a cash payment from one or more of the refundable tax credits. The average amount was $2,428. Thus, an effect of the increased use of the tax code for social policy goals has been an increase in the number of rural taxpayers who owe no Federal income tax and who receive a cash payment as a result of the refundable tax credits…”

For states, a glimmer of hope on deficits, By Michael Cooper, May 17, 2011, New York Times: “From stronger-than-expected tax collections in deficit-ridden California to projected surpluses in struggling states like Michigan and Pennsylvania, a growing number of recession-weary states are finally announcing a bit of good budget news for the first time since the downturn began. But it would probably be premature to pop the Champagne, or even the prosecco - or to otherwise declare the fiscal crisis that has hammered states to be over. ‘If the question is ‘Are we out of the woods?,’ I think the answer is probably no,’ said Donald J. Boyd, a senior fellow at the Nelson A. Rockefeller Institute of Government in Albany, which closely tracks state tax collections. ‘We’re closer to the edge. But there are still so many things that states and localities need to worry about…’”

• In Florida, off-the-job conduct may put your unemployment benefits at risk, By Jim Stratton, May 11, 2011, Orlando Sentinel: “A just-passed overhaul of Florida’s unemployment laws gives employers the ability to challenge jobless benefits to former employees for behavior that has little to do with how they conduct themselves at work. The provision permits businesses to fight a worker’s benefits claim based on ‘misconduct, irrespective of whether the misconduct occurs at the workplace or during working hours.’ In essence, it allows the business to cite a worker’s private behavior as a reason to deny benefits…”
• Bill could end long-term benefits for jobless, By Marisa Schultz, May 12, 2011, Detroit News: “States could end long-term benefits for laid-off workers and use the money to pay off federal loans for the unemployment benefits under legislation passed Wednesday in the House Ways and Means Committee. States also could use the federal extended unemployment money to pay for federal tax increases on businesses or to start job creation programs. Michigan is to receive $1.3 billion this year from the federal government, which will distribute $31 billion nationally. As a result of the prolonged recession, 29 states owe the federal government a total of $41.2 billion in outstanding loans for unemployment benefits. Michigan, which held the highest unemployment rate in the nation for nearly four years, owes nearly $3.2 billion and must start paying the bill Sept. 30…”

New version of Snyder tax plan saves Earned Income Tax Credit for working poor, By Dawson Bell, May 10, 2011, Detroit Free Press: “Michigan’s working poor would continue to receive supplemental income from the Earned Income Tax Credit - albeit at a significantly reduced level - under the latest revision to Gov. Rick Snyder’s proposed business and income tax overhaul plan. The credit, currently set at 20% of the federal EITC, would be reduced to 6%, under a proposal announced by Lt. Gov. Brian Calley this morning during a Senate committee hearing on the overhaul. That would mean about $108 million in relief to low-income wage earners in 2012, down from a projected $360 million under current law…”

State approves tax credit for working poor, By Stephen Singer (AP), May 5, 2011, Stamford Advocate: “Connecticut’s new earned income tax credit will provide needed financial help to as many as 190,000 low-income workers, supporters say. Critics dismiss it as welfare. The tax credit, part of the $40 billion, two-year budget signed Wednesday by Gov. Dannel P. Malloy, is a major victory for the Democratic governor and Democrats who run the Legislature after being blocked for years by then-Gov. M. Jodi Rell, Malloy’s Republican predecessor. Sen. Martin Looney, the Democrats’ leader in the state Senate, called it an economic stimulus for low-income workers…”

Most states seen raising jobless tax on businesses, By Michael Cooper, April 27, 2011, New York Times: “As persistently high unemployment has drained the funds that are used to pay jobless benefits, more than two-thirds of the states expect to raise taxes on businesses this year to replenish them, according to a survey of labor agencies released Wednesday. Unemployment taxes remain low by historical standards: the survey, by the National Association of State Workforce Agencies, found that states have effectively cut the unemployment tax rate on businesses by 64 percent since the unemployment program began collecting taxes from employers in 1938…”

• Snyder agrees to $25 per child tax credit, By Paul Egan, April 20, 2011, Detroit News: “The Snyder administration has agreed to a House lawmaker’s proposal that would restore part of the Earned Income Tax Credit, Lt. Gov. Brian Calley said today. Calley said Gov. Rick Snyder is prepared to support a proposal from Rep. Jud Gilbert, R-Algonac, that would give a tax credit of $25 per child for families that would have been eligible for the EITC. Snyder’s Feb. 17 budget proposed eliminating the state version of the credit, which is equal to 20 percent of the federal credit for the working poor. Adding the $25-per-child credit is expected to cost about $20 million, Calley said. He said changes Snyder made to his proposal for the Homestead Property Tax Credit give another $80 million in relief to low-income earners. Eliminating the EITC is expected to save the state about $340 million. Families that received the credit received an average of $432 last year…”
• Gov. Rick Snyder agrees to restore part of Earned Income Tax Credit, By Dawson Bell, April 20, 2011, Detroit Free Press: “A new change agreed to in Gov. Rick Snyder’s plan to overhaul Michigan’s tax code would restore a portion of the Earned Income Tax Credit for the working poor, administration and legislative officials said today. The administration has agreed to give EITC-eligible income tax filers a $25/child credit, Lt. Gov. Brian Calley said in testimony before the House Tax Policy Committee. Coupled with changes to Snyder’s original proposal announced last week that more narrowly target the Homestead Tax Credit to low-income filers, the revised proposal would provide about $100 million in payments to the working poor…”

In some states, working poor could pay more taxes, By Pam Fessler, April 11, 2011, National Public Radio: “Several states want to scale back or eliminate a tax credit for the working poor, as they try to balance their budgets. Anti-poverty groups say some of these same states also want to cut taxes for businesses. Governors say they’re trying to balance the need to promote jobs with deficit reduction. But advocates say the poor are being asked to bear an unfair share of the burden. The tax break is called an earned income tax credit, or EITC. About half the states offer residents an EITC on top of a similar credit available from the federal government…”

States weigh cuts to earned income tax credit for working poor, By Pamela M. Prah, March 28, 2011, Stateline.org: “Rohnalda Hollon, a single mother of three in Beaverton, Michigan, and an Iraq war veteran, worries that state budget cutbacks will wipe out the refund she gets from a program aimed at helping the working poor. ‘The $400 from the Earned Income Tax Credit could mean the difference between paying my Consumer’s Energy bill or not,’ says Hollon, who works full-time for the Army National Guard Military Funeral Honors program, and has been put forward as one of the faces of an advocacy campaign called Save Michigan’s Earned Income Tax Credit. Hollan is typical of the recipients of the Michigan credit, which returns an average of $432 to families, most with children. Governor Rick Snyder wants to eliminate the program, along with a slew of other tax credits, in a bid to make the state tax system ’simple, fair and efficient.’ Eliminating the credits also would help close the state’s $1.8 billion budget deficit. Just scrapping the Earned Income Tax Credit, or EITC, would save the state at least $340 million a year…”

• Walker’s budget slashes tax credits that aid poor, By Dee J. Hall, March 6, 2011, Wisconsin State Journal: “Low-income taxpayers in Wisconsin would lose hundreds of dollars in tax credits a year under Gov. Scott Walker’s proposed budget - at the same time the governor wants tax cuts for businesses and investors to boost jobs. Walker proposes cutting about $16 million a year from the program, which in 2009 paid 273,939 low-income Wisconsin residents a total of $133 million. Under Walker’s proposed biennial budget, a single mother with two children earning about minimum wage - $15,000 a year - would lose $302 of her $704 Earned Income Tax Credit next year, according to estimates from the nonpartisan Wisconsin Taxpayers Alliance. A two-parent household with two children earning $30,000 a year would see its tax credit cut by $194 to $258, the alliance said…”
• Bill seeks to cut EITC percentage, By Matthew Clark, March 11, 2011, Pittsburg Morning Sun: “A bill spearheaded by a Kansas House committee has been proposed to decrease Kansas’ Earned Income Tax Credit (EITC) from its current 18 percent to 5 percent over the next four years. State Rep. Terry Calloway, a Pittsburg Republican, introduced the measure to the House Taxation Committee and it has already drawn sharp attacks from Democrats and other opponents who call the measure ‘counter-productive.’ The bill will generate an additional $56.3 million to the state’s General Fund initially in fiscal year 2012 and increase to $64.5 million by fiscal year 2016. It will reduce the amount of the tax credit - which is meant to benefit low-income individuals and families and also takes out a provision making the tax credit refundable. That means, if a family’s tax credit was higher than their tax liability, they would have the liability paid off, but would not get a check for the difference…”

Tax credit helps poor, but many unaware, By Rita Price, February 25, 2011, Columbus Dispatch: “As a single mother who works and goes to college, Brandi Hardgrow adheres to a budget that leaves little room for wiggle - or for unexpected car repairs. But she gets by, and a big reason is her tax savvy. Hardgrow, 29, files for the Earned Income Tax Credit and then carefully manages a hefty refund - sometimes more than $2,500 - that keeps her household humming when her job as a Columbus-schools latchkey worker pauses for summer break. ‘It’s made a total difference in my life,’ she said. Researchers say the EITC is the nation’s best poverty buffer for low-income workers. It’s also an economic boon for their communities because recipients often need to spend a big chunk of their refunds right away…”

Bill would eliminate state tax credit for working poor, By Karen Bouffard, February 8, 2011, Detroit News: “Tax credits for Michigan’s working poor would be eliminated under a bill introduced in the state Senate today. The bill to repeal the state earned income tax credit (EITC) was met with strong opposition by Democrats and family advocates, who said it would amount to a tax increase for low income workers. The bill was introduced by Sen. Roger Kahn, R-Saginaw, who said Michigan can’t afford the $370 million cost. If the bill passes in the Senate and House, and is signed into law by Gov. Rick Snyder, the credit would be eliminated at the end of this calendar year…”

For working poor, tax tweak cuts pay, By Brian J. O’Connor, January 31, 2011, Detroit News: “If you haven’t seen the new 2 percent payroll tax cut reflected in your paycheck yet, look closely at your pay stub. But if you don’t make a lot of money, you might not want to look too closely. Today is the deadline for employers to adjust their payroll systems and lower the rate on Social Security payroll taxes to 4.2 percent from 6.2 percent. They’ll also have until March 31 to adjust checks to give back any excess amount withheld so far this year. Sam Morgan, a tow truck driver, said he would be glad to see anything extra in his next paycheck. ‘I would like a tax cut,’ the 25-year-old Madison Heights man said. ‘I can always use more money in my paycheck.’ But for taxpayers making less than $20,000 a year, the new tax cut will turn out to be a tax hike. Workers making $15,000 a year, for example, will pay $100 more in taxes during 2011 than in 2010. And if they file a joint return, they will pay $500 more…”

New tax law may hold a surprise for working poor, By Tim Lockette, January 20, 2011, Anniston Star: “When President Barack Obama and congressional Republicans cut a deal on the extension of Bush-era tax cuts last month, the move was billed as a tax reduction for all. But the working poor may find an unpleasant surprise in their paychecks this month, says one tax expert. ‘If you’re a low-wage earner, you’ll be worse off, as will about 50 million households,’ said Roberton Williams, a scholar at the nonprofit Tax Policy Center, which is run jointly by the Urban Institute and the Brookings Institution. ‘You’ll probably see the effects of the change in your next paycheck.’ The Star contacted Williams after a reader pointed out that her first January paycheck was actually smaller than her paycheck from last year - despite a recent compromise tax bill that was widely interpreted as a tax cut. Republicans and Democrats sparred throughout December over extension of Bush-era cuts to income taxes, which were set to expire Dec. 31 of last year…”

Debit card refunds for lower-income folks should work in Michigan, By Susan Tompor, September 12, 2010, Detroit Free Press: “The U.S. Treasury plans to test the delivery of tax refunds in plastic for lower-income individuals who do not have bank accounts, and Michigan seems to me like a no-brainer for a pilot program. ‘I think Michigan would provide fertile ground,’ said David Marzahl, president of the Center for Economic Progress, the nation’s largest tax-preparation provider for low-income families. The Chicago-based center leads the National Community Tax Coalition, a group of community-based tax and financial services programs that serve more than 1 million low-income families nationwide. Marzahl noted that communities in Michigan offer racial, ethnic and economic diversity. Assistant Treasury Secretary Michael S. Barr has a Michigan connection, too, having taught at the University of Michigan Law School. More important, consumers in metro Detroit — and other cities in the Midwest — have long been targeted by tax-preparation companies that pitch high-cost refund-anticipation loans to individuals who do not have bank accounts…”

IRS decision means tax-refund loans will be harder to make, By Michelle Singletary, August 12, 2010, Washington Post: “The Internal Revenue Service has dealt a hard blow to a tax product that has long needed to be knocked out. The IRS announced recently that starting with next year’s tax filing season it will not provide tax preparers and financial institutions with important debt information on taxpayers that allows the companies to arrange or make refund-anticipation loans, or RALs. A RAL is a short-term loan backed by a tax refund. The loan lasts only until a person’s refund arrives, which can be in about 10 days with electronic filing and direct deposit. Since the 1990s, the IRS has provided to tax preparers and associated financial companies a ‘debt indicator’ as a way to determine how much of a person’s tax refund might be taken by the government…”

Child fitness tax credit little used by poor families, study finds, By Karen Kleiss, August 4, 2010, Vancouver Sun: “Canada’s fitness tax credit does little to encourage physical activity among kids from low-income families who can’t afford to pay registration fees, a new study says. The University of Alberta research found that middle-class and wealthy families benefit most from the $500 tax credit, and are twice as likely to claim the credit as are low-income families. Study author John Spence said low-income families simply can’t afford to pay registration fees in the first place, so they can’t take advantage of the tax credit down the line…”

States face new pinch as stimulus ebbs, By Deborah Solomon, June 23, 2010, Wall Street Journal: “Already-strapped states are about to face a new squeeze as the boost from federal economic-stimulus spending draws to a close and Washington looks increasingly reluctant to widen the nation’s budget deficit. States have long known stimulus funds sent their way early in the recession would taper off in the first half of 2011. But many hoped a rebound in tax receipts would close the gap. While state revenues have rebounded somewhat, legislatures still must grapple with deficits totalling $127 billion over the next two fiscal years, according to the National Association of State Budget Officers. Meanwhile, many lawmakers in Washington, concerned about a U.S. budget deficit that could rise by as much as $11 trillion over the next decade, are opposing more spending…”

• Senate cuts to recession relief bill favor special interests, By Janet Hook, June 23, 2010, Los Angeles Times: “As the Senate scrambles to scale back a $140-billion recession relief bill, the poor, the elderly and the unemployed are bearing the brunt of the squeeze. But NASCAR track developers, movie producers and other special interests are likely to escape unscathed. Those businesses stand to gain $32 billion in tax breaks as part of the bill, which has been stalled for weeks because of rising complaints about deficit spending. In the hunt for ways to cut costs, neither party has proposed curbing the panoply of narrow tax preferences, which Congress has routinely extended each year. Instead, Senate leaders have proposed a $25 cut in weekly unemployment benefits; temporarily allowed a 21% cut in Medicare fees for doctors; and are planning to withhold or scale back $24 billion in payments many states expected to help pay for Medicaid for the poor…”
• Cutting off the unemployed, Editorial, June 22, 2010, New York Times: “It was bad enough when the Senate left town for a long Memorial Day break without passing a bill to extend expiring unemployment benefits. It’s worse now. Back in session for nearly three weeks, the Senate still has not acted. That means that 900,000 jobless workers have already lost their benefits, a number that will swell to an estimated 1.6 million people if an extension is not passed by the July Fourth holiday. Lost benefits - the average check is $309 a week - deprives struggling Americans of cash they need for buying food, paying the rent or mortgage and other essentials…”

Free money left on table, By Armand Emamdjomeh, April 29, 2010, New York Times: “What if residents of California - a state reeling from unemployment, a sagging economy and a gaping budget hole - had access to more than $1 billion, but did not use it? What if Alameda County residents had access to $29 million and failed to take it out of the federal treasury? That is exactly what they have been doing, according to a new report, ‘Left on the Table,’ by two professors at California State University, Fresno, which was published by the New America Foundation. An estimated 800,000 California residents will fail to claim a total of $1.2 billion in 2009 earned-income tax credit refunds, the report says. California has the highest rate of unclaimed earned-income tax credits nationally, with nearly a quarter of qualified residents failing to claim the credit when they file their taxes, according to studies by both the Internal Revenue Service and the Government Accountability Office…”

Report: Poor pay higher state tax share, By Mediha Fejzagic DiMartino, April 14, 2010, San Bernadino County Sun: “California’s poorest residents cough up a higher share of their income to fund the state services than those in the highest income bracket. And as tardy taxpayers face today’s deadline for submitting state and federal income tax forms, the poor have also run headlong into California’s economic problems. ‘It’s a good-news, bad-news situation,’ said Jean Ross, executive director of the California Budget Project, whose report released this week outlined the inequities of taxation in California. ‘In the name of helping the economy, the federal government has lowered taxes to targeted groups, such as families with children. State had to balance its budget so it increased the taxes. It can’t ‘deficit-spend’ like the feds.’ The state’s decision to increase tax liability has especially hit hardest at the poorest 20 percent of California families…”

Burden higher for nonprofit hospitals, Illinois Supreme Court says, By Bruce Japsen and Jason Grotto, March 19, 2010, Chicago Tribune: “An Illinois Supreme Court decision Thursday puts nonprofit hospitals on notice that they must provide an adequate amount of charity care to patients or risk losing significant tax exemptions. The decision, closely watched at a time when medical centers and the government are straining to cover health care costs for the poor, is a blow to the state’s hospital industry. It sets the stage for a potential debate about exactly how charitable hospitals must be, with some experts predicting that Springfield could seek to pass a law mandating the amounts. In the meantime, state officials indicated they could incorporate the court ruling into their assessments of whether to renew hospital tax exemptions. In its decision upholding a lower court ruling, the high court found that the Illinois Department of Revenue was correct in withdrawing Provena Covenant Medical Center’s property tax exemption in 2004 because the Urbana hospital failed to justify adequately the exemption through charitable giving…”

• Jobs program lost its way - and tax money, By Todd Wallack, March 14, 2010, Boston Globe: “The blue sign on the building says Nortel Networks, but it might as well be ‘Your tax dollars at work.’ In exchange for more than $2 million in state and local tax breaks, the Canadian telecommunications equipment maker promised a decade ago to expand its campus in Billerica, keeping 2,200 existing jobs and adding as many as 800 more. But instead of adding jobs, the struggling company has steadily slashed its operations for years. Today, it has 145 employees. It also still has those tax breaks, set to continue through 2014. And Nortel, amazingly, is by no means an isolated case. Over the past 16 years, Massachusetts has given away hundreds of millions of dollars in state and local tax breaks for more than 1,300 development projects under its Economic Development Incentive Program, which aims to encourage companies to invest here and create jobs. Often the incentives work and new jobs result. But far too often taxpayers have not come close to getting their money’s worth, a Globe review has found…”
• Rich towns get ‘distressed’ status, By Todd Wallack, March 15, 2010, Boston Globe: “Hingham boasts million-dollar estates along its scenic shoreline, stately antique houses on Main Street, and boutique shops around the town square. The median household income is nearly $113,000 a year, well above the state and national average, while unemployment is well below the statewide rate. Yet Massachusetts has long classified Hingham as ‘economically distressed.’ The South Shore town is on the state’s list of economic target areas, allowing several companies, including a six-screen movie theater and a clothing store, to qualify for special tax breaks in exchange for a promise to open there. And Hingham is not the only unlikely-seeming hard luck case. Over the last 16 years, the state has designated ‘economic target areas’ in 209 of the state’s 351 cities and towns, making companies eligible for tax breaks if they expand there. Among them are such other comfortable suburbs as Hopkinton, Bedford, Lexington, and Westwood. Though lawmakers originally created the Economic Development Incentive Program in 1993 to nudge businesses to invest in decaying cities and other areas scarred by poverty and unemployment, such as Fall River and Lawrence, the state has, over time, expanded the program to include almost any municipality that applies…”

Earned-income credit boosts Michigan’s low-income workers, By Brian J. O’Connor, February 16, 2010, Detroit News: “Michiganians struggling to just get by in this dismal economy are getting a helping hand from an unlikely source: the tax man. Federal and state tax agencies have anywhere from a few hundred to several thousand dollars to give low-income workers and their families through the Earned Income Tax Credit. Last year, more than 720,000 Michigan residents collected $1.5 billion from the federal credit, at an average of $2,047 apiece. More than 40 percent of those getting the credit lived in Wayne, Oakland or Macomb counties. Michigan gave out $145 million under the first year of its own state credit, which matched 10 percent of the federal cash, and this year the state is set to match 20 percent of the federal amount…”

Tax break may grow for working poor, By Peter Wong, February 14, 2010, Salem Statesman Journal: “An expansion of a tax break for poor working families won support from Portland to Medford - and Woodburn. The expanded break, in the form of an earned-income tax credit, no longer would benefit Ian Finch of Portland or state Rep. Betty Komp of Woodburn. But both qualified for the federal credit, which is subtracted directly from taxes owed - and they said an expanded state credit would help thousands of families. Finch used the credit while, as a single father of five children, he was working and going to school - even though he said he could have drawn more from welfare payments. ‘Increasing the state earned-income tax credit will help other families who work really hard to break the cycle of poverty,’ Finch told the Senate Finance and Revenue Committee last week. ‘This is also an opportunity for the state of Oregon to send the message to these hard-working families that they are valued and that the state recognizes all their hard work…’”

IRS expands Earned Income Tax Credit for 2009, January 29, 2010, Milwaukee Journal Sentinel: “There’s a bright spot in the nation’s dismal economic climate this tax season: The Internal Revenue Service has expanded the Earned Income Tax Credit for 2009, meaning more families are eligible for a larger return from the federal government. The EITC now includes low-income working families with three or more children, and the top income limit has increased to $48,279 from $41,646 in 2008. Changes also have been made to the definition of a qualifying child. The IRS estimates more than 5 million additional families will be eligible for the expanded credit this year. The EITC gave back $50 billion to 24 million taxpayers across the country in 2008, said David Williams, director of electronic tax administration and refundable credits for the IRS. ‘EITC is one of the largest and most effective anti-poverty programs in government. It lifted millions of people out of poverty last year,’ Williams said…”

Tough economy could spark surge in tax refund loans, By Tony Pugh, January 24, 2010, Miami Herald: “After several years of declining use, tax refund anticipation loans could make a big comeback this tax season with poor, cash-strapped taxpayers. Known as ‘RALs,’ refund anticipation loans are bank loans secured by the amount of a person’s expected income tax refund. Once a tax return is filed electronically by a commercial tax preparer, a third-party bank can provide the loan to the taxpayer in the amount of the expected refund. Various costs, fees and finance charges are deducted from the check, which usually arrives in three to five days - or within a few hours for an extra fee of $25 to $39. In turn, the IRS sends the taxpayer’s actual refund check to the bank to pay off the loan. The combination of widespread money woes, a sour economy and fatter tax refund checks for poor families could entice more people into taking the quickie loans, which have been one of the most pilloried financial products ever marketed…”

Study finds working poor hardest hit by income tax, By Phillip Rawls (AP), November 5, 2009, Montgomery Advertiser: “A national study released Wednesday showed Alaba­ma makes families living in poverty pay higher income taxes than any other state. The study by the Center on Budget and Policy Priori­ties comes a few days after a U.S. Census report showed Alabama residents and busi­nesses overall pay less in state and local taxes than their counterparts in any other state. In the 2007 fiscal year, the average of state and local taxes collected per person in Alabama was $2,909. Missis­sippi finished 49th at $2,989. The national median was $4,011. That doesn’t mean every­one in Alabama is enjoying low taxes…”

Tax refund loans cost Arkansans millions, By John Lyon, November 3, 2009, Fort Smith Times Record: “Arkansans spend about $100 million a year obtaining loans against anticipated tax refunds, according to a report released Monday by Arkansas Advocates for Children and Families. The report also estimated that Arkansans miss out on as much as $110 million a year by failing to claim the federal earned income tax credit. ‘Low-income tax filers are paying tax preparation fees, in many cases exorbitant tax preparation fees to have their taxes done, when in fact most low-income families could receive free tax assistance through an existing VITA (Volunteer Income Tax Assistance) site,’ Rich Huddleston, executive director of Arkansas Advocates, said at a news conference to announce the report…”

Food sales tax could be completely reinstated, By Arthur Raymond, October 9, 2009, Deseret News: “It may be coming back. A state sales tax on food that’s been incrementally decreased for the past two years - and widely viewed as one that unfairly targets low-income families - could be under consideration for a complete reinstatement in the face of ongoing, large-scale revenue losses. Members of the Utah Tax Review Commission heard testimony Thursday from advocates of the disadvantaged, grocery industry representatives, tax watchdogs and a state legislator who sponsored a failed attempt at increasing the food tax last session. This time, however, the idea may find some traction under the cloud of an upcoming state budget shortfall currently being estimated at $700 million…”

Obama would keep $85 billion in tax breaks for working poor, By Lori Montgomery, September 3, 2009, Washington Post: “President Obama is proposing to add more than $85 billion to the nation’s budget deficits over the next decade to extend two tax breaks for the working poor, a move critics on Wednesday blasted as a violation of Obama’s pledge to pay for new policies. The tax breaks were included in the economic stimulus package Obama signed soon after taking office in January, and are scheduled to expire in 2011. But last week, in its midyear update of the federal budget, the White House said it plans to extend the tax cuts through 2019 without covering the cost by cutting spending or raising taxes elsewhere. The reason? Technically, the stimulus amended a series of sweeping tax cuts enacted in 2001 during the Bush administration. Obama has repeatedly said he does not expect Congress to cover the enormous cost of maintaining the Bush tax cuts past their 2010 expiration date. And because the stimulus provisions are now part of the Bush tax cuts, Congress shouldn’t have to pay for them, either, White House budget documents say…”