Beneficial State Foundation Perspectives

Our thoughts on changing the banking system for good and building the new economy

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.

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)