Reed Seeks to Provide Tax Relief for Working Families

Statement

In an effort to reward hard work and help workers keep more of what they earn, U.S. Senators Jack Reed (D-RI), Patty Murray (D-WA), and Sherrod Brown (D-OH) are calling for passage of the 21st Century Worker Tax Cut Act. The Murray-Reed-Brown bill would provide working parents in two-earner families with young children a 20 percent deduction on the second earner's income -- blunting marriage penalties in the current U.S. tax code and making work pay a bit more for households struggling to make ends meet. The bill would also increase the maximum Earned Income Tax Credit (EITC) for childless workers to about $1,400, up from the current level of about $500 and reduce the childless worker eligibility age for the credit from 25 to 21.

The legislation seeks to build on work incentives both Republicans and Democrats agree have been effective, and is paid for by closing wasteful loopholes that both parties have acknowledged as worthy candidates for elimination.

"We need a multi-faceted approach to improving our economy and increasing living standards for working families. This is about simple fairness and rewarding hard work. The 21st Century Worker Tax Cut Act uses bipartisan ideas to update the tax code and provide targeted tax breaks for working families in a fiscally responsible way that will boost our economy without adding to the national debt," said Reed. "This legislation will help keep tax bills lower for millions of Americans while also making it easier for parents to transition back the workforce. A lot of Rhode Island households rely on paychecks from two working parents to make ends meet and this bill will help them keep more of their hard earned money."

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