Commentary
The California Legislature is considering expanding the Earned Income Tax Credit (EITC), a type of negative income tax. If you earn below a certain level of income, instead of paying income tax, you get a cash check or deposit to your bank account. CalMatters reported:
“Democratic Assemblymembers Mike Gipson of Gardena and Miguel Santiago of Los Angeles recently authored two bills that would expand California’s Earned Income Tax Credit and its Young Child Tax Credit.
“Combined the bills would cost about $1.1 billion annually, in a year the state is predicting a $22.5 billion to $25 billion deficit.”
Below I’ll discuss the two bills: AB 1498 and AB 1128. But first, here’s some essential background information….