Introduction of Earned Income Tax Credit Information Act of 2008

Floor Speech

INTRODUCTION OF EARNED INCOME TAX CREDIT INFORMATION ACT OF 2008 -- (Extensions of Remarks - June 25, 2008)

SPEECH OF
HON. RAHM EMANUEL
OF ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
WEDNESDAY, JUNE 25, 2008

* Mr. EMANUEL. Madam Speaker, today I am introducing the Earned Income Tax Credit Information Act of 2008, legislation that will make it easier for millions of Americans to receive the Earned Income Tax Credit, (EITC).

* Every year I host tax clinics in my district in order to help my constituents get a fair deal when they file their taxes. Hundreds of my constituents come to these clinics and with the help of volunteers receive thousands of dollars in tax refunds.

* But millions of Americans and thousands in my district still don't get the tax credits they deserve, like the EITC. The EITC is the single most important tool we have to encourage work and reduce poverty in our country.

* Nationally, over 22 million working Americans benefit from this program and receive $43 billion in Federal assistance. That's an average amount of over $1900 per taxpayer. At $4 a gallon, an average EITC check can now pay for 32 trips to the gas station to fill your tank.

* In my district, over 38,000 taxpayers received $64 million through the EITC. But because one-quarter of those eligible to receive EITC don't claim it, there are also nearly 13,000 of my constituents who should receive EITC but don't and they're losing out on $25 million in benefits.

* Nationally, there are 7 million Americans who are eligible to receive this benefit but don't. This amounts to a loss of $14 billion to eligible working Americans.

* American families are struggling to get by. The cost of gas, food, education, and health care are skyrocketing. How can we stand by and let the American people leave $14 billion on the table?

* A Republican Governor working with a Democratic legislature has given us a model for addressing this problem. Last year, Governor Arnold Schwarzenegger signed into law Assembly Bill 650, the Earned Income Tax Credit Information Act. The bill was simple and straightforward. The law requires that California employers notify employees of their potential eligibility for the EITC when they send employees their W-2 forms.

* Employers are uniquely positioned to help because they are already providing their employees with their W-2 forms that tell them their earnings for this year. This law simply piggy-backs on that requirement to help employees understand that they may be eligible to receive the EITC.

* Our legislation takes the California law and expands it to the rest of the country. Under our bill, employees throughout the country who earn enough to be eligible for the EITC will receive a notice from their employer with their W-2 form telling them about the program and how to learn more about it. Small businesses will not be affected by the bill and the proposal won't cost American taxpayers one single dime. It's a common sense way to ensure families who need it most get the benefits they deserve.

* I am hopeful that this legislation will be unnecessary. Today, Sen. Schumer and I will send a letter asking the Administration to accomplish this goal by executive order. Secretary Paulson is a supporter of EITC and I'm hopeful that he will build on his role during the economic stimulus debate and embrace this common-sense, fiscally responsible approach to providing hardworking Americans with additional fiscal relief.

* Finally, Wal-Mart, the Nation's largest employer, and the SEIU, one of the Nation's leading labor unions, are supporting the bill. They understand the importance of the EITC to their workers and members. In addition, the bill is supported by the Center on Budget and Policy Priorities, Citizens for Tax Justice, the Leadership Conference on Civil Rights, Corporate Voices for Working Families, the College and University Professional Association of Human Resources, TJ Maxx, Kindred Healthcare, and Cintas.

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