2015 July

States adopt and adapt the EITC to address local need

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Cross-posted on Brookings’ Metro Blog, The Avenue

Natalie Holmes and Alan Berube

When California passed its 2016 budget late last month, it joined a growing list of states that have recently adopted or expanded state versions of the federal Earned Income Tax Credit (EITC). First enacted in 1975, the EITC has become one of the country’s most effectiveantipoverty programs. We estimate that the federal EITC keeps millions of individuals and children out of poverty each year, reducing the national poverty rate by several percentage points. Others have shown how the EITC creates a strong incentive to work and works as a powerful tool for reducing income inequality.

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Can D.C. afford a $15/hour minimum wage?

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Cross-posted on Brookings’ Metro Blog, The Avenue

Alan Berube

Earlier this week, the Washington Post reported that D.C. city officials have cleared the way for a voter initiative in November 2016 to raise the city’s hourly minimum wage to $15. The proposal is already pitting labor unions and other progressive groups who back the rise against restaurant owners and the D.C. Chamber of Commerce, who warn that the hike would force job cuts and business closings.

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Resources

Learn about suburban poverty in your community, how innovators around the country are addressing it, and what you can do locally and nationally to take action.