The 2018-19 Budget: California Earned Income Tax Credit Education and Outreach

May 8, 2018 - Reduces Poverty and Generally Encourages Work. The EITC reduces poverty by increasing the after-tax income of low-income individuals and families. In addition, because the amount of the credit initially rises with earnings —which increases the value of additional work —it also has been shown to encourage work, particularly among low-wage and low-skilled single parents.
https://lao.ca.gov/Publications/Report/3826

The 2018-19 Budget: The May Revision—State Earned Income Tax Credit Expansion

May 14, 2018 - The administration proposes to expand the state EITC to working individuals without children who are between the ages of 18 and 25, as well as to those over age 65. In addition, the administration proposes to increase the income level at which the credit phases out completely to $24,960 (the earnings of one person working fulltime at the 2019
https://lao.ca.gov/Publications/Report/3835

The 2020-21 Spending Plan: Tax Changes

Oct 5, 2020 - Earned Income Tax Credit Expands Eligibility for California Earned Income Tax Credit (EITC). The California EITC is a personal income tax credit that is intended to reduce poverty by increasing the after-tax income of California ’s poorest working households.
https://lao.ca.gov/Publications/Report/4270

The 2019-20 Budget: Analysis of Proposed Earned Income Tax Credit Expansion

Mar 6, 2019 - This can discourage people from moving from part ‑time to full ‑time work in some cases. In this section, we consider how well the Governor ’s proposal encourages people to join the workforce while reducing the disincentive to work full time.
https://lao.ca.gov/Publications/Report/3960

California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - Differences in Weekly Hours Amplify Earnings Inequality. Figure  5 shows that mid-to-high-wage workers are much more likely to work full-time than low-wage workers. As a result, the gap between these groups ’ weekly earnings is wider than the gap between their hourly wages.
https://lao.ca.gov/Publications/Report/4878/1

Evaluation of the Property Tax Postponement Program

Oct 8, 2018 - Working Age Homeowners Are More Likely to Have Temporary Periods of Low Income. Homeowners who are younger than retirement age and are not disabled are more likely to be able to participate in the labor force, earning income.
https://lao.ca.gov/Publications/Report/3885

The 2020-21 May Revision: Revenue Proposals in the 2020-21 May Revision

May 20, 2020 - Corporations may earn credits if they take actions the state wants to encourage, such as spending money on research and development. Tax credits reduce a business ’s tax bill directly, on a dollar-for-dollar basis.
https://lao.ca.gov/Publications/Report/4238

The 2019-20 Budget: California Spending Plan—Conformity

Oct 17, 2019 - ABLE accounts are tax-advantaged savings accounts that allow the families of individuals with disabilities to save money for their future care. Contributions to ABLE accounts are not tax deductible but the earnings are excluded from income for state and federal tax purposes.
https://lao.ca.gov/Publications/Report/4100

Tax Credit Expansions in the American Rescue Plan

Apr 13, 2021 - Federal EITC The federal EITC is a provision of the federal income tax code that allows filers with total income below a certain level to reduce their tax liability by an amount that depends on their earnings from paid work or self-employment.
https://lao.ca.gov/Publications/Report/4410

The 2019-20 Budget: California Spending Plan—Expands Earned Income Tax Credit (EITC)

Oct 17, 2019 - The 2019-20 Budget: California Spending Plan—Expands Earned Income Tax Credit (EITC) Expands Earned Income Tax Credit (EITC) Overview The EITC is a personal income tax credit that is intended to reduce poverty by increasing the after-tax income of California ’s poorest working households.
https://lao.ca.gov/Publications/Report/4099