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PA’s United Way calls for refundable earned income tax credit

The United Way of Pennsylvania is asking state legislators to support a refundable state Earned Income Tax Credit.

Based on a study by the University of Texas at Austin Child & Family Research Center, for every $1 in cost to the state, a refundable EITC will generate a $7 return.

Kristen Rotz, president of the United Way of Pennsylvania, said a refundable EITC will benefit the taxpayers and local economy.

“Putting taxpayer earnings back into the pockets of working households will help citizens, businesses and government move forward from the pandemic while creating more thriving and equitable communities,” she said.

According to a press release, a refundable EITC equal to 10% will benefit that same percentage state residents and generate annual benefits of $562 million to the state’s economy.