EITC helps alleviate financial strains

Throughout Iowa, many working families struggle daily. Buying groceries, covering the rent, and paying utility bills remain challenges for many low- and moderate-income households, particularly those with children.

These families work hard and pay taxes. Low-income workers in Iowa pay 10.9 percent of their income in state and local taxes, while Iowa's wealthiest families pay as little as 6 percent of their own income. Iowa is one of about two dozen states that have their own versions of the federal Earned Income Tax Credit (EITC), which helps to alleviate financial strains on hardworking families. The state EITC is smaller than it should be, and the average credit amount of $136 offers limited relief.

Iowa has a statewide coalition of 26 non-profit corporations that train and mobilize more than 700 volunteers who prepare taxes free for low- and moderate-income taxpayers. The Iowa EITC Coalition includes United Ways, ISU Extension, Community Action Agencies, Iowa Legal Services, Community Foundations, churches, RSVP's, and a Community Correction Improvement Organization. Iowa's program is part of a nationwide network of the National Community Tax Coalition.

The EITC represents crucial support to pay for basic needs: rent, groceries, car repairs, and kids' school supplies. A bill that would increase this support has passed in the state Senate. It's time for the House to do the same and for Gov. Branstad to approve it.

Mike Tramontina, President

ISED Ventures

Des Moines

Jackie Lynn

Coleman, Executive Director,

National Community Tax Coalition

Chicago