BILL NUMBER: SCR 92INTRODUCED BILL TEXT INTRODUCED BY Senator Liu MARCH 23, 2010 Relative to taxation. LEGISLATIVE COUNSEL'S DIGEST SCR 92, as introduced, Liu. Taxation. This measure would urge community organizations and local government entities to promote education and awareness of the Earned Income Tax Credit and other tax credits that help working families persevere through difficult economic times. Fiscal committee: no. WHEREAS, The Congress of the United States enacted the Earned Income Tax Credit (EITC) in 1975 to offset the burden of social security taxes on low-income taxpayers, to supplement wages, and to encourage work; and WHEREAS, Since its enactment in 1975, the EITC has brought millions of families above the poverty level and has had a high participation rate relative to other programs for low-income Americans; and WHEREAS, The EITC has been expanded by a series of Presidents of the United States, including both Democratic and Republican presidents; and WHEREAS, Working California families may be missing out on a federal refund of up to five thousand six hundred fifty-seven dollars ($5,657) because they are not aware of the EITC and other working family-tax credits, such as the Child Tax Credit, the Child and Dependent Care Credit, and the Making Work Pay Credit; and WHEREAS, According the Internal Revenue Service (IRS), up to one in four eligible taxpayers may fail to claim the EITC because they are not aware of the credit or of free assistance to claim the credit; and WHEREAS, The EITC is available to taxpayers who work, but do not earn high incomes and may often struggle to make ends meet. These taxpayers could be missing an opportunity to pay less federal income tax, pay no federal income tax, or receive a refund; and WHEREAS, New parents, grandparents raising grandchildren, and foster parents may not realize they qualify for the EITC. Some families, such as those in the military and those raising children with disabilities may not realize that there are special rules that may help them quality for the EITC; and WHEREAS, The IRS and other organizations collaborate with local agencies to offer Volunteer Income Tax Assistance (VITA) to raise awareness of the EITC; and WHEREAS, The IRS and its partners provide tools to local agencies to link financial education and other asset-building efforts, such as individual development accounts; and WHEREAS, The IRS and the Congress of the United States have taken steps to reduce the EITC's error rate and simplify the filing of the credit; and WHEREAS, Employers, at no additional cost to themselves, can increase the take-home pay of their employees if their employees utilize the EITC; and WHEREAS, The EITC increases revenue in the community and has a substantial impact on the California economy; and WHEREAS, A recent study estimated that 800,000 Californians will fail to claim one billion two hundred million dollars ($1,200,000,000) in EITC refunds in 2009 and that California business will lose out on one billion four hundred million dollars ($1,400,000,000) in sales and 8,200 jobs will not be created as a result; now, therefore, be it Resolved by the Senate of the State of California, the Assembly thereof concurring, That the Legislature urges community organizations and local government entities to promote education and awareness of the EITC and other tax credits that help working families persevere through difficult economic times; and be it further Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.