The California Legislature has approved a measure that will significantly increase the tax credit for low-wage workers. This move aims to provide much-needed financial relief to individuals struggling with low incomes. The decision to more than double the tax credit demonstrates the state government's commitment to supporting its most vulnerable residents. This policy aims to alleviate the burden of taxes on low-wage workers and provide them with additional funds to meet their basic needs. By passing this legislation, the California Legislature has taken a step towards creating a more equitable and prosperous society for all its citizens.

$1 billion California Earned Income Tax Credit (Cal EITC) is set to be sent to the desk of the Governor for approval.

Sacramento, CA - Legislators have given their approval for an extensive increase in the California Earned Income Tax Credit (Cal EITC), which is anticipated to give back $1 billion to workers in California in the coming year. This significant expansion will more than double the current economic advantage of this successful program aimed at combating poverty. This landmark achievement for workers will greatly assist 3 million households in California, benefiting an estimated 7 million individuals, including millions of children, in their ability to afford essential necessities.

According to the President of Golden State Opportunity / CalEITC4Me, Josh Fryday, hardworking low-income Californians have achieved a significant victory today, and they have certainly earned it. The action taken by the Legislature to increase the California Earned Income Tax Credit by more than double is a historic event. With this program now valued at one billion dollars, it will have the power to improve the lives of millions of families and children by lifting them out of poverty. Moreover, it will also have a positive impact on the economy across the entire state of California, particularly in underserved areas that are in dire need of such assistance," stated Fryday. "The Governor and Legislature have truly risen to the occasion and made a substantial effort to create a more inclusive California for everyone, while also providing support and lifting up those hardworking individuals who face daily struggles."

The Cal EITC expansion package has been introduced to raise the qualifying income threshold for workers earning $15 per hour, which happens to be the minimum wage for the year of 2020. As a result, numerous individuals will benefit from a more substantial credit, particularly families with children aged 6 or below, who will additionally receive $1,000. Another positive outcome of this package is its ability to establish a sustainable funding source for the Cal EITC, achieved through the closure of tax loopholes exploited by wealthy investors as well as large corporations.