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The Earned Income Tax Credit in Massachusetts: Alleviating poverty today, increasing opportunity tomorrow

The Earned Income Tax Credit (EITC) is widely considered one of the most effective anti-poverty programs for working families. The Massachusetts EITC was first enacted in 1997. In 2015, both Democratic and Republican legislators in the Commonwealth, along with Governor Baker, successfully increased the Massachusetts EITC to 23 percent of the federal credit. More than 400,000 households in Massachusetts will benefit from the recent increase in the EITC when they file their 2016 taxes.

Massachusetts has an opportunity to lead the nation in reducing inequality. An increase in the
state EITC to 50 percent of the federal credit would place Massachusetts as an evidence-based
leader having the most robust refundable state EITC in the nation. Working in tandem with one of the nation’s highest minimum wages (after CA and NY), Massachusetts could aggressively lead the way in addressing inequality, alleviating child poverty, and increasing the opportunity for healthy,
successful families in the Commonwealth.