CUMBERLAND COUNTY, Pa. — Update (11:50 a.m.):
United Way of Pennsylvania executives presented the study from the University of Texas at Austin Child & Family Research Center showing a state Earned Income Tax Credit equivalent to 10% of the federal benefit would help 10% of the state population averaging to $197 per claim. 25% of the federal credit would benefit 12% of Pennsylvanians giving a benefit of $594.
Minorities, such as Black and Hispanic families who are greatly impacted in areas of higher poverty rates are said to also receive a greater benefit than the state average.
The study provided more information on key advantages, however, Kristen Rotz, the current president of United Way of Pennsylvania made it a point to note an EITC in the state would help the community with their everyday needs and aid with future expenses to then be regenerated into the economy.
"They're often taking those tax refunds and putting them towards a vehicle repair, or a household repair." said Rotz, "In some cases, they could be using those refunds to help access additional training and education for themselves, and their careers and their jobs and in some cases, they find a way to save some of those dollars for children's future education.
Rotz says there are currently two state legislators who have circulated co-sponsorship memos for the effort: Republican State Representative Marina White, representing the 170th district of Philadelphia, and Republican State Senator Mario Scavello representing the 40th district of Monroe and Northampton Counties.
There have been questions regarding the costs of expenses needed to implement a state EITC and Phil Falvo, public policy director of the organization has said the actual cost for administrative expenses is usually less than 1% of the total benefit.
For more information on the United Way of Pennsylvania's efforts visit their website here.
Previously:
The United Way of Pennsylvania will hold a virtual media briefing over Zoom to release a new report on implementing a State Earned Income Tax Credit in the Commonwealth.
Currently, there is no state-level EITC, therefore, executives hope to touch on how many tax filers would benefit from a refundable EITC, the average benefit, and how the credits will help spur the state's economy.
The effort comes on "Earned Income Tax Credit Awareness Day," an annual awareness event held nationally by the Internal Revenue Service along with other partners to help all families know what extra funds may be available to them.
Partners in this effort include community organizations, elected officials, state and local governments, schools, employers, and more.
The goal is to reach as many people as possible as the revenue service says these EITCs combined with other tax credits such as the Child Tax Credit and American Opportunity Tax Credit will help to give a financial boost to working families and local communities.
Friday morning's virtual media briefing will be held at 9:30 a.m.