Personal income taxes: credit: earned income: eligible individual.
If enacted, AB 2066 will likely have a profound influence on state tax policy by increasing the number of individuals qualifying for the earned income tax credit. By adjusting age requirements and allowing a broader demographic to access tax relief, the bill intends to draw more low-income individuals into the economic fold. The amendments will also stipulate that taxpayers must present a Social Security Number or federal taxpayer ID to be eligible for the credit, ensuring compliance with federal tax laws while supporting those who contribute to the tax system.
Assembly Bill 2066 aims to amend the California Revenue and Taxation Code, specifically regarding the Personal Income Tax Law. The bill intends to revise the eligibility criteria for the earned income tax credit (EITC) for individuals without qualifying children, lowering the age requirement from 25-65 to anyone aged 18 and older. This change seeks to extend financial assistance through the EITC to a broader range of low-income working individuals, including younger workers who traditionally struggle with economic challenges. The overarching goal is to mitigate poverty among working families and individuals across the state by enhancing access to essential tax credits that alleviate financial burden.
The sentiment surrounding AB 2066 appears to be favorable largely among Democratic legislators and advocacy groups concerned with social justice and poverty reduction. They view the bill as a necessary adjustment to meet the contemporary economic realities faced by low-income individuals, especially those aged 18-24, who often experience disparities in income and employment. Conversely, some critics express concerns about the potential fiscal implications of broadening the tax credit eligibility, worrying it could lead to increased strain on state finances in the long run.
A notable point of contention involves the tension between fiscal responsibility and social support. Opponents of the bill raise fiscal concerns, particularly regarding the sustainability of expanding the earned income tax credit and its impact on the state's budget allocations for other welfare programs. Supporters counter that the long-term benefits of lifting families out of poverty and enabling them to contribute to the economy far outweigh immediate costs. Furthermore, there is also discussion around immigration status exclusions, as the bill aims to facilitate access for more working individuals, regardless of history, emphasizing inclusivity in financial assistance.