Congresswoman Gwen Moore Re-Introduces Worker Relief and Credit Reform (WRCR) Act to Expand and Modernize the Earned Income Tax Credit

Congresswoman Gwen Moore Re-Introduces Worker Relief and Credit Reform (WRCR) Act to Expand and Modernize the Earned Income Tax Credit

Today, Congresswoman Gwen Moore held a press conference to mark the re-introduction of H.R. 1468, the Worker Relief and Credit Reform (WRCR) Act, to expand and modernize the Earned Income Tax Credit (EITC) so that this important tax credit better meets the demands on America’s workforce and fights poverty. Key reforms to the EITC in the WRCR Act include expanded eligibility criteria, increased credit amounts, and the creation of an advance payment regime administered by the Internal Revenue Service, with added customer service options, to get these benefits into the hands of beneficiaries effectively and seamlessly.

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In response to the introduction of her bill, Congresswoman Gwen Moore released the following statement:

“The EITC is a proven poverty-alleviation tool, benefiting millions of Americans each year. But it could use some improvements to reflect our current economic realities, including the fact that older workers are a large part of the workforce and the need for caregivers is increasing – and therefore, so are the demands on the sandwich generation. My bill, the WRCR Act, answers those needs in a direct, meaningful way.

Key proposals in my legislation are similar to those in the American Rescue Plan Act (ARPA), which provided relief through bolstered monthly Child Tax Credit payments and temporarily expanded the EITC for childless workers. The ARPA enhancements reached millions of families and working people, helping give people more cushion and financial stability – in other words, they reduced the misery index.

In that same vein, my legislation would reach people previously overlooked by the EITC. For instance, the existing EITC eligibility rules result in childless workers often being taxed into poverty. My WRCR Act will provide a long-term fix, expanding the credit to reach more workers without children by lowering the eligibility age to 18 and removing the upper eligibility cap for seniors and greatly increasing the amount of the credit available to these workers. In addition, my bill recognizes those who want to better be able to contribute to our economy in the future by seeking a higher education but struggle financially because they are forced to forego earnings immediately. And, with my bill, society will finally start recompensing workers who make career sacrifices to provide unpaid care to a loved one. We need the WRCR Act to fight poverty and help build an equitable, modern economy that supports all working people,” said Congresswoman Gwen Moore (D-WI).

“This bill is pro-worker AND pro-business, and it would be an effective way to lift workers out of poverty. I’ve heard from Philadelphia businesses that are having trouble finding workers. We’ve heard about it all over the country. This bill would help!” said Congressman Dwight Evans (D-PA). “The WRCR Act would do more to make work pay. I also support raising the minimum wage, and this bill is another tool in the toolbox -- and we can do it through the tax code. The Earned Income Tax Credit has enjoyed a lot of bipartisan support over the years -- including from President Reagan.”

“When COVID struck, millions of workers and families saw the economic floor fall out beneath them, but Congress’s response proved that we had the tools to step in and provide fast, effective relief,” said Rep. Judy Chu (D-CA). “Congressional Democrats proved that expanded tax credits including the Earned Income Tax Credit (EITC) could greatly reduce poverty and give working people the resources they need to afford necessities like groceries, rent, and medical expenses. By passing the WRCR Act and expanding the EITC, we will modernize the idea of “work” to include caregiving and make significant strides in combatting poverty. I am proud to join Rep. Moore’s efforts to create a more equal economic playing field and ensure our tax code isn’t tilted against the interests of working class people.”

“This bill would have helped both me and my son, who struggled as a college student and was told in order to get food stamps he had to comply with work requirements, as if he wasn’t already working. For me, this bill would have been transformative, both because of the cash which was desperately needed, but also because I would have had the dignity of being recognized as a worker. As we who are mothers and caregivers know, this is money we have earned and deserve,” said Pat Albright, caregiver and advocate.

“During the COVID-19 pandemic, lawmakers on Capitol Hill stepped up for hard-working families throughout the nation, providing much-needed stimulus checks and expanded, monthly Child Tax Credit payments that guaranteed parents could afford basic necessities like food and rent,” said Adam Ruben, Director of Economic Security Project Action. “In reintroducing the WRCR Act, Congresswoman Moore has demonstrated her commitment to championing direct cash policies that bring us closer to an economy that truly works for everyone. This bold legislation – which provides caregivers and students with monthly cash payments – has the power to ensure over 160 million Americans have the financial stability and empowerment to weather rising costs and care for their families.”

Endorsed by the Economic Security Project Action; Children’s HealthWatch; MomsRising; Young Invincibles; Community Advocates Public Policy Institute; Women of Color/Global Women’s Strike; Care Income Now/US; Global Women’s Strike; Every Mother is a Working Mother Network; Payday men’s network; Local 212 MATC FAST Fund; AFT Local 212; MICAH Milwaukee Inner-city Congregations Allied for Hope; Family and Home Network; Equity and Transformation; ParentsTogether Action; The Bridge Project, Golden State Opportunity, Healthy Families Tax Credits Coalition; 20/20 Vision, Kid Forward; AFT Local 212; Welfare Warriors; Peace, Justice, Sustainability NOW; Brandywine Peace Community; The Old Women’s Project; Just Harvest.

Click here for more background information on the WRCR Act.

 

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