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Beneficial State supports CalEITC expansion

Beneficial State supports CalEITC expansion

The California Earned Income Tax Credit (CalEITC) is an important tool proven to boost economic stability for working families with the lowest incomes.  According to the California Budget & Policy Center, more than 90% of the CalEITC went to working families with children who are living in poverty. The CalEITC, together with the federal EITC, lifted an estimated 255,000 Californians out of deep poverty in tax year 2015.

In 2016, as part of our commitment to communities that have been historically underserved, Beneficial State Bank was one of only ten financial institutions that offered a check cashing waiver for CalEITC-qualified recipients.  In the absence of a mandated living wage that truly allows a family to have economic mobility, the EITC is a necessary tool to help lift a family above the poverty line. Beneficial State Foundation supports the following expansions to improve the EITC program, consistent with the CA state legislators’ and Governor’s recommendations:

  1. Increasing outreach to eligible California residents who have not filed for the credit.  The majority who are eligible for the tax credit aren’t required to file state income taxes due to their very low incomes. Therefore, strategic and targeted outreach is critical.
  2. Increasing the income threshold, which currently limits who is eligible for the credit, and allowing Californians who are self-employed to claim the credit.  These changes would bring the state’s tax credit closer in line with the federal tax credit.

Sources:
State Earned Income Tax Credits (EITCs) Build on the Well-Documented Success of the Federal EITC (March 9, 2017)
The CalEITC Provides Substantial Benefits to Low-Income Working Families with Children (May 8, 2017)

Our statement on values

Our Statement on Values

We at Beneficial State commit to work each day toward our vision for an equitable and tolerant world – one that is fully inclusive, racially and gender just, and environmentally restorative. Our commitment to justice, one of the core values that guides our organization, remains strong as we build a fair, inclusive, and prosperous economy for all.

We oppose a ban on immigration and refugees because it threatens these values. This country was founded by immigrants and continues to innovate and thrive because of immigrants and refugees – they are a strength to our nation. We do not, and will not, accept discrimination in any form.

After the November election we wrote to you, our stakeholders, about our commitment to human dignity, affirming that we will work diligently to empower our customers, to finance a just economy and healthy planet, to change the banking system for good, and to make this country truly great for all. We stand by that commitment and thank you for joining in this work with us.