New interactive map shows how a state EITC would help working families in all 88 Ohio counties
- April 10, 2013
Credit should be part of budget proposal, research group says in testimony
The state legislature should include a state Earned Income Tax Credit in the budget proposal being considered by the House of Representatives, according to testimony prepared today by Policy Matters Ohio for the Ohio House Finance and Appropriations Committee. The nonpartisan, nonprofit research institute also released an interactive map of Ohio that shows the benefits by county of both the existing federal EITC and a state credit.
In its recent report, “Small Investment, Big Difference: How an Ohio EITC would help working families,” Policy Matters recommended that Ohio adopt a state EITC, as 24 states and the District of Columbia have done.
“An EITC not only helps create a more fair tax structure, it provides a boost to local economies, as EITC dollars are often spent and saved locally,” said David Rothstein, project director at Policy Matters. “This multiplier effect creates local and state tax revenue based on goods and services that are sold.”
Rothstein’s testimony outlines the benefits of a state EITC set at 20 percent of the federal credit as in many states. At that level, an Ohio EITC would provide 800,000 working families with an average of $446 annually.
“Only families with earned income would qualify for the credit, which is substantially higher for those with children,” said Rothstein. “It’s easy to implement, as simple as adding a line on the tax form.”
The interactive map allows users to see how many families benefit, the average benefit, and other key EITC statistics for each county. Scioto County residents, for example, would receive the largest average state refund at $478. Adams and Vinton counties have the highest percentage of EITC-claiming families at 28 percent of total filers. Visit www.policymattersohio.org to use the interactive map.