Summary
A state Earned Income Tax Credit (EITC) in Mississippi, modeled on the federal EITC, will give a much-deserved break to working families, while also boosting local communities and economies across the state.
Since its enactment in 1975, the federal EITC has provided a much-needed boost to working families and has played an active role in reducing poverty. According to the Center on Budget and Policy Priorities, in 2018, the federal EITC lifted about 5.6 million people, including about 3 million children, out of poverty. It also reduced the severity of poverty for another 15.6 million people, including 6.1 million children.
As of December 2020, nationwide EITC claims totaled approximately 25 million eligible workers and families for a combined $62 billion in credits. The average amount of EITC received nationwide totaled approximately $2,461. In comparison, 359,000 Mississippi families filed federal EITC claims for a combined total EITC amount of $1 billion. The average EITC amount for the state totaled $2,903. This amount is higher than any other state in the nation.
Policy Brief
Fact Sheets
Leave a Reply