Coffman introduces bipartisan measure to expand earned income tax credit

Legislation introduced by U.S. Rep. Mike Coffman (R-CO) on Friday would use cost savings from fraud prevention efforts to expand the earned income tax credit (EITC).

The Enhancing Advancement, Reducing Noncompliance and Improving Trust (EARN IT) Act, H.R. 4946, would expand access to the EITC for childless workers, as well as for young, single people who are beginning their careers.

“I grew up in a working class neighborhood, and I fully understand the importance and the value of work over welfare,” Coffman said. “This is why increasing incentives to reward work is so important and this legislation does exactly that.”

Under current laws, the EITC primarily benefits low- and moderate-income adults who are older than 25 and have children, but little assistance is available for younger, low-income single adults.

The bipartisan EARN IT Act would raise the maximum credit for childless adults, increase phase-in and phase-out rates, phase the credit in and out over greater incomes, and lower the minimum age to claim the EITC from 25 to 21.

“This bill will increase assistance for low wage workers without causing job losses,” Coffman said.

The EARN IT Act would use cost savings resulting from enhanced enforcement and fraud prevention efforts to offset the additional costs of expanding the EITC. The expected net cost savings for preventing fraud would total $3.7 billion over a 10-year budget window, according to the Joint Committee on Taxation.

“I’m pleased to have the support of both Republicans and Democrats on this important legislation,” Coffman said. “Standing up for low wage workers is not a partisan issue but it’s an issue we can all support.”

U.S. Reps. Cresent Hardy (R-NV) and Tim Walz (D-MN) cosponsored the bill.