Support LB 710: Increase the earned income tax credit

Chairman Von Gillern and members of the Revenue Committee

My name is Garret Swanson, G-A-R-R-E-T S-W-A-N-S-O-N and I am here on behalf of the Holland Children’s Movement, a nonpartisan, not-for-profit organization that strives to fulfill its vision for Nebraska to become a beacon in economic security and opportunity for all children and families, in support of LB710.

Thank you for taking the time to hold this hearing Senators. It is very rare that we get to discuss a piece of legislation that can have such a massive impact so soon after passage. The Earned Income Tax Credit is one of the most effective tools the government has to alleviate poverty. According to the Center on Budget and Policy Priorities in 2018, the EITC lifted 5.6 million people above the poverty line. When the American Rescue Plan Act was passed and the EITC was expanded, 17 million people were directly impacted. When combined with the child tax credit, child poverty decreased dramatically.

Expansion of the EITC is not a new conversation for this Legislature, it has been a topic of discussion since Senator Patty Pansing Brooks introduced LB495 in 2015 to expand the EITC from 10% to 13% in 2016, then to 15% in 2017. Since then, Nebraska has unfortunately fallen behind in keeping up with other states in expanding the EITC. Although conditions vary, Colorado has set a 50% match for tax payers in the year 2024. Michigan has expanded theirs to 30% while Massachusetts expanded theirs to 40%.

Of course, just because another state does something doesn’t necessarily mean another state should. Plus this bill comes with a not so insignificant fiscal note while we’re currently facing a budget deficit. I understand these are big hurdles. But big hurdles allow us to come up with bold solutions.