COLUMBUS, OHIO – This week, U.S. Reps. Mike Carey (R-Ohio-15) and Danny K. Davis (D-Ill.-07), both members of the House Ways and Means Committee, reintroduced the EITC for Older Workers Act. The bipartisan bill would eliminate the age cap for workers to qualify for the earned-income tax credit (EITC). Presently, the credit can only be claimed by workers between the ages of 25-65.
“America’s workforce has changed since the EITC was established in 1975. Many Americans are working longer, and a rising retirement age should be reflected in the program,” Rep. Carey said. “Certain Americans should not be prevented from accessing critical tax provisions because of their age. I proud to lead this bipartisan, common-sense effort to give them a boost in Ohio and across the country.”
“The Earned Income Tax Credit – or EITC – is a powerful tool to reduce poverty and help low-income workers,” Rep. Davis said. “With workers aged 65 and older representing one of the fasted-growing groups in our labor force, I proudly join with Rep. Carey to give permanent tax relief to older Americans by removing the age cap on the EITC. Roughly 1.6 million older workers benefited from this temporary policy in 2021, and Congress should act now to restore these tax protections for older Americans.”
“The EITC helps millions of people earn their way out of poverty, encouraging them to find and keep a job. Turning age 65 should not result in a sudden tax hike for lower-income workers. Indeed, older workers need to keep more of what they earn to support their families and build greater financial security as they age. Workers age 65-plus represent the fastest-growing segment of the labor force. Removing this arbitrary age cap ensures that those who are eligible and choose to work do not have their taxes raised just because they turn 65,” Bill Sweeney, AARP Senior Vice President for Government Affairs, said.
“The Critical Labor Coalition applauds Congressmen Carey and Davis for their leadership in recognizing the importance of older workers in today’s economy. By expanding eligibility for the Earned Income Tax Credit to workers over the age of 65, the EITC for Older Workers Act encourages those with experience and a strong work ethic to reenter the workforce at a time when employers need them the most. Workers 65-plus not only serve as role models to today’s youth, but they fill a much-needed demand for workers in a U.S. labor shortage which will only intensify in the upcoming years,” Misty Chally, Executive Director of the Critical Labor Coalition, said.
“The fastest growing population of people falling into poverty and becoming unhoused are older Americans. Rep. Carey’s EITC for Older Workers Act is critical to extending the power and effectiveness of the EITC to older workers where this tax credit helps them meet the rising cost of living,” Amy Everitt, President of Golden State Opportunity, said.
BACKGROUND:
Nearly 16 percent of Ohioans ages 65 and older remain in the workforce. Moreover, a recent study reports that almost half of the workers born between 1946 and 1960 expect to work past age 70 or do not plan to retire.
The EITC is a refundable tax credit for low- to moderate-income workers and families. Qualifying taxpayers can use the credit to reduce the taxes they owe. The credit amount is based on several factors, including the amount of income earned, the number of qualifying children, and the martial status of the individual.
The legislation earned the support of the AARP, the Critical Labor Coalition, and Golden State Opportunity.
Full text of the legislation can be found here.
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