In President Obama’s FY15 budget he proposes expanding the Earned Income Tax Credit (EITC) [PDF] for workers without dependent children.
This expansion would benefit women at all stages of their lives. It will help young women entering the workforce, including financially independent students. It will help mothers, whose earnings have been reduced because of caregiving, after their children have left home. It will also help older women seeking to supplement or increase their Social Security benefits.
Women are a majority of low-wage workers, and this proposal means that the tax code would no longer push low-wage, childless workers into poverty. Instead, it rewards work, boosts incomes, and reduces poverty.
Here’s what you need to know:
- 6.1 million working women – including financially independent students and mothers of grown children – would benefit from the President’s proposal to extend the EITC to workers age 21 to 67 and increase it for workers without qualifying children.
- The proposal’s extension of the EITC for workers up to age 67 would especially help women. Women are nearly half of workers ages 65 and 66, but represent about two-thirds of poor adults ages 65 and 66.
- Increasing the upper age limit for the EITC to 67 would bring it into line with the scheduled increase in Social Security’s full retirement age. This would encourage older workers to stay in the workforce and avoid a reduction in benefits from claiming Social Security early.