Congressman Nadler Seeks to Ease Tax Burden on Large Families By Expanding The Earned Income Tax Credit

Apr 18, 2017 Issues: Jobs, Labor and the Economy

WASHINGTON, D.C. -- Today, Congressman Jerrold Nadler (NY-10) announced the reintroduction of legislation designed to assist large working families by expanding the number of children that families can claim under the Earned Income Tax Credit (EITC). The Tax Fairness For All Families Act is a direct response to the concerns of larger families who live near or below the poverty level. Under Nadler's bill, families could claim up to seven children under the EITC – an increase from the current cap of three children. The credit would increase proportionally with each additional child.

"My district has many large families, often living in or near poverty, who work but still need support to meet their day to day needs,” said Congressman Nadler.  “The burden of balancing work, family and community life – especially in expensive areas like New York City – is very challenging.  The EITC provides some relief, but for large families it does not do enough. My bill responds directly to the needs and concerns of large families, and would help them pay for basic necessities, like food, rent, transportation, and other costs that families with more children incur."

The EITC was specifically designed to help low-income families escape poverty through work, and the size of a family’s EITC depends on its earned income and number of children. Under current law, a family’s EITC maxes out at 45% of income for three or more children regardless of the number of children in the family. Nadler’s bill would expand the number of children for which a family can claim the EITC to seven or more.  Families with four children will receive a 50% credit; five children a 55% credit; six children a 60% credit; and, seven or more children a 65% credit.

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