Congresswoman Fudge and Congresswoman Moore Introduce Legislation to Fight Poverty and Honor Unpaid Work

Statement

Congresswoman Marcia L. Fudge (OH-11) and Congresswoman Gwen Moore (WI-4) introduced the Worker Relief and Credit Reform (WRCR) Act to expand and modernize the Earned Income Tax Credit (EITC) to meet the demands of America's current and future workforce. Key reforms to the EITC include changes to the eligibility rules, the maximum credit, phase-in rates, phase-out rates, and the creation of a new advance payment regime.

The Worker Relief and Credit Reform Act changes the eligibility rules by (1) decoupling the credit from the size of a family, (2) expanding the age range by reducing the lower age limit to 18 and removing the upper age limit completely, and (3) broadening the types of activities that constitute "work" to include educational activities and family caregiving. The bill also makes the credit more user-friendly by allowing for a monthly advance payment option for up to 75 percent of a worker's estimated credit.

"It is disturbing that Americans must work multiple jobs for 40 hours or more a week and are still unable to provide for their families," said Congresswoman Fudge. "Representing a district where more than 50 percent of Cleveland's children are living below the federal poverty line, I am proud to co-lead this bill with Congresswoman Moore that would benefit 154 million Americans, lower the poverty rate by one-third, and recognize our caregivers' important contributions to the workforce. It is our duty to ensure workers and their families do not fall into poverty. They deserve every opportunity to reach the middle class."

Today, Congresswoman Moore held a press conference at Independence First in Milwaukee, Wisconsin to discuss how this legislation would benefit Milwaukeeans, where 22.5 percent of residents live below the poverty level.

"This is very personal to me," said Congresswoman Moore. "I was a single mom and a student at the same time. I have also been a victim of the welfare queen trope -- which I proudly acknowledge, now. I have been a real critic to welfare policies that claim to help people in poverty that do not actually put people on a trajectory out of poverty. But, the EITC is a program that really has some legs for continuing to address the rising cost of living and wage stagnation. Still, at 40 years old, signed into law by Gerald Ford, this credit is long overdue for a revamp.

"I worked closely with the Economic Security project to make critical improvements to the EITC and I've thought a lot about how we can achieve certain equities. When I think about the economic progress of the United States over the last century, I know that poverty persists in American not because we lack resources. We have plenty of money. Having money is not the problem. Labor's declining share of our nation's GDP is the problem. The concentration of economic benefits at the top is the problem. It doesn't matter how big our GDP is if the benefits are shared unequally.

"That's why it is so important to me that we expand the EITC to include more low-wage workers under the umbrella of economic stability. And that we expand it to students so people can be educated to take on the new kinds of jobs needed in our economy and to recognize the work of people taking care of loved ones. We need to acknowledge that this uncompensated labor is not free."

The EITC currently lifts about 6 million people out of poverty each year. The Tax Policy Center estimates the Worker Relief and Credit Reform Act would have lifted approximately 9 million additional people out of poverty in 2019, benefitting 42 percent of households.

Cosponsors include: Reps. Bass, Bishop, Butterfield, Cohen, Chu, David, Cicilline, Clay, Davis, Escobar, Fudge, Garcia, Lee, Steve, Rush, Garcia, Grijalva, Haaland, Hastings, Huffman, Jackson-Lee, Jayapal, Khanna, Lawrence, Maloney, Moore, Nadler, Norton, Omar, Pocan, Pressley, Ryan, Schakowsky, Tlaib, and Watson-Coleman.

The bill is endorsed by the following organizations: Economic Security Project Action; NAACP Milwaukee Branch; Kids Forward; IndependenceFirst; Caring Across Generations; Community Change Action; U.S. PIRG; WISPIRG; Friends Committee on National Legislation; MomsRising; DEMOS; NETWORK Lobby for Catholic Social Justice; National Advocacy Center of the Sisters of the Good Shepherd; Congregation of Our Lady of Charity of the Good Shepherd, US Provinces; Congressional Progressive Caucus; RESULTS; First Focus Campaign for Children; MICAH Milwaukee Inner-city Congregations Allied for Hope; and Policy Matters Ohio.

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