Where Will We Get the Money From?
Posted in *Walatinos Project Research* on 03/31/2009 12:44 pm by heathernh
No Money?!
After engaging in a rather uncomfortable discussion with Senator Mike Hewitt of our own Legislative District 16, I left wondering how Washington will be able to afford the changes we so desperately need. I asked Senator Hewitt to consider funding a state Earned Income Tax Credit (which was passed last year) and to encourage bilingual outreach of the federal Earned Income Tax Credit (EITC).
“Who would you have me take the money from to implement your suggestions?” he demanded. What he didn’t seem to realize was that my recommendations will actually bring more money into the state.
With an $8 billion dollar deficit, Washington needs as many federal dollars as it can get. The EITC is a federal tax credit available to working families with low incomes. Families can receive up to $4800 a year, enough to boost many families past the poverty threshold. Unfortunately, I found through extensive surveys and interviews that Latinos are unlikely to know about the EITC, and are even more unlikely to claim it. This means there are many people living in poverty that needn’t be.
This should upset you. Simply on a humanitarian level, you should be concerned for these people who should be claiming the tax credit – the mother who can’t afford to buy her 16-year-old son new jeans, the young couple who is evicted because they can’t afford rent. But even if that doesn’t strike a chord, you should be upset because this money belongs to your town! Walla Walla County alone stands to gain an extra $8 million dollars if every eligible person claimed the EITC. I know I can think of a few things to do with an extra $8 million dollars.
The costs of implementing bilingual outreach would be minimal. The IRS already offers many EITC outreach materials, and some in Spanish. Senator Hewitt need only encourage the use of these materials, as well as provide training for Spanish speakers at free tax preparation sites. A simple public acknowledgement of the problem may prompt local tax preparers who work with Latinos to inform their clients of the EITC and to make sure those who are eligible are actually claiming it.
Click here for my full report.