[Congressional Record Volume 149, Number 106 (Thursday, July 17, 2003)]
[Extensions of Remarks]
[Page E1494]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E1494]]
   INTRODUCING THE EARNED INCOME TAX CREDIT PUBLIC AWARENESS CAMPAIGN

                                 ______
                                 

                         HON. ALCEE L. HASTINGS

                               of florida

                    in the house of representatives

                        Wednesday, July 16, 2003

  Mr. HASTINGS of Florida. Mr. Speaker, I rise today to introduce the 
Earned Income Tax Credit Public Awareness Campaign Act.
  The Federal Earned Income Tax Credit, or EITC, provides Federal tax 
deductions for the working poor. In 2001, the Earned Income Tax Credit 
provided over $30 billion in tax relief to 18.5 million low-income 
taxpayers. In fact, the EITC is the second largest program after 
Medicaid that provides assistance to low-income individuals combating 
poverty. Data from the U.S. Census Bureau Current Population Survey 
indicates that in 1999 the EITC assisted 4.7 million people, including 
2.6 million children of low-income workers, rise above the poverty 
line.
  However, each year, between 15 and 25 percent of those who are 
eligible to receive the EITC fail to claim their credit, either because 
they are unaware of it or cannot obtain the assistance they may need to 
properly complete the appropriate tax return. Lack of education, 
language barriers, fear or intimidation, limited financial resources, 
and unawareness of the credit all contribute to low-income families and 
individuals not taking advantage of this tax relief. This is a disgrace 
and a clear disservice to America's working poor.
  In south Florida, the number of individuals and families not claiming 
the EITC is staggering. In Miami-Dade County, FL, alone, it is 
estimated that more than $200 million worth of the EITC goes unclaimed 
annually by about 120,000 low-income families living in the County. At 
the same time, approximately 85,000 eligible families living in Broward 
County annually do not claim more than 99 million dollars worth of the 
EITC.
  While Broward and Miami-Dade Counties have each committed themselves 
to educating taxpayers of the EITC and increasing the number of those 
claiming it, their resources are limited. Many large cities throughout 
the country are taking similar efforts to increase the number of 
taxpayers who are eligible to claim the EITC actually claiming the 
credit, but as is the case with Broward and Miami-Dade Counties, 
limited man-power and insufficient financial resources are road blocks 
to expanded outreach and ultimate increases in the number of those 
claiming the credit.
  The Earned Income Tax Credit Public Awareness Campaign Act 
establishes a national campaign to raise awareness and increase 
education about the EITC. Housed in the Internal Revenue Service, the 
campaign will target low-income individuals, students, single parents, 
limited English speaking individuals, transient workers, and military 
personnel, all of whom are statistically the most likely to qualify for 
the EITC. The bill requires that the campaign contain an education 
component, as well as an awareness program.
  Additionally, my bill establishes a national grant program that 
states can participate in to conduct their own statewide EITC public 
awareness campaigns. To receive a grant, a state is required to provide 
matching funds.
  The bill authorizes $15 million annually for the next 10 years to 
implement the program, and between 25 percent and 50 percent of the 
funds appropriated are required to be spent on the state grant program.
  The IRS has long criticized Americans who claim the EITC but are not 
actually eligible to receive the credit. The agency's recent 
announcement to audit nearly 4 million of the 19 million individuals 
and families who claimed the credit in 2003 is as shocking as it is 
disturbing.
  At a time that Congress continues to cut taxes for the wealthy, it is 
appropriate for the body to also consider ways to expand outreach and 
education about this underutilized, but extremely beneficial, tax 
credit.-The EITC, if used properly and to its fullest potential, can be 
a critical tool in the war against poverty, and my bill does just that.
  I ask my colleagues to support this measure, and I urge the 
leadership to bring it to the floor for consideration swiftly.

                          ____________________