The resolution highlights that over one in three Californians struggle to meet their basic needs, pointing out that an estimated 3.7 million households fall below the Real Cost Measure, which better reflects the cost of living than traditional poverty measures. It emphasizes the importance of the CalEITC in supporting these households, facilitating better maternal and child health outcomes, and promoting local economic growth through enhanced spending power. By designating a specific week for CalEITC awareness, the resolution seeks to spotlight these issues and encourage more eligible families to take advantage of the tax credits available to them.
Assembly Concurrent Resolution No. 132, introduced by Assembly Member Santiago, proclaims the week of January 26, 2024, through February 2, 2024, as CalEITC Awareness Week. This initiative aims to promote awareness and understanding of the California Earned Income Tax Credit (CalEITC), which was enacted in 2015 as a refundable tax credit designed to combat poverty among Californian families. The CalEITC, along with the federal Earned Income Tax Credit (EITC), serves as a critical financial resource for low-income households and is believed to significantly improve financial stability for many families across the state.
One notable aspect is the inclusion of Individual Taxpayer Identification Number (ITIN) holders, who are typically excluded from various federal tax benefits. California's expansion of the CalEITC to include ITIN holders demonstrates a commitment to support all families, particularly those led by non-citizens, of which 57% live below the Real Cost Measure. This inclusion aims to provide fair financial support to a vulnerable demographic, reinforcing the state's recognition of diverse family structures and their economic challenges. The resolution also mentions the availability of the Young Child Tax Credit to all CalEITC-eligible families with young children, further underlining the financial needs of families with children under six.