[Congressional Record Volume 157, Number 13 (Monday, January 31, 2011)]
[Senate]
[Pages S354-S355]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EARNED-INCOME TAX CREDIT AWARENESS DAY
Mr. AKAKA. Mr. President, this past Friday marked the annual Earned-
Income Tax Credit Awareness Day. I rise to recognize the success and
importance of this vital tax benefit for hard-working Americans.
As our country continues its steady recovery from the worst economic
conditions hard-working American men and women have faced since the
Great Depression, families need financial relief and many people need
jobs.
As we renew our efforts to promote job creation, increase access to
credit for small businesses, and restore confidence and stability to
markets, we should not forget that we already have what one President
once called ``the best anti-poverty, the best pro-family, the best job-
creation measure to come out of Congress.'' President Ronald Reagan was
talking about the earned-income tax credit.
Since 1975, the EITC has helped to offset the impact of Social
Security taxes for low- and moderate-income individuals. Nearly 26
million taxpayers across the country received the EITC when they filed
their tax returns last year. In Hawaii alone, over 100,000 low- and
middle-income workers received an average of nearly $2,000 for this
tremendous tax benefit. These vital EITC resources help families pay
for essentials such as food, housing, clothing, transportation, and
education expenses.
The earned-income tax credit is more important now than ever before.
With many Americans still out of work, some families accustomed to
budgeting based on the earnings of two people are struggling to survive
on the income of one. Some people in Hawaii and across the country who
are working new, lower paying jobs may be eligible for the earned-
income tax credit for the first time.
To be clear, every taxpayer who receives the EITC is hard working
because the earned-income tax credit is only provided to Americans who
work for a living. The EITC encourages individuals to find work,
support themselves and their families, and improve their quality of
life.
A few years ago, only one in five taxpayers eligible for the EITC
claimed their benefits. Since then, tremendous progress has been made.
The number has risen to four in five, thanks in part to the tireless
work of taxpayer consumer advisers and advocates in our communities.
Our goal now should be to see to it that all eligible taxpayers claim
their EITC benefits this year. That would mean in Hawaii alone about
34,000 more taxpayers would receive much needed financial relief, with
similar results across the country.
I plan to reintroduce the Taxpayer Abuse Prevention Act in this 112th
Congress. My bill is intended to protect low- and middle-income
taxpayers from falling victim to unscrupulous lenders. Historically,
many EITC recipients have turned to predatory refund anticipation loans
which are short-term loans typically carrying steep interest rates.
Working families cannot afford to lose a significant portion of their
EITC to these expensive short-term predatory loans. My bill will better
protect consumers from predatory lenders that prey on the EITC benefits
of low-income taxpayers, and I urge my colleagues to support it when
the bill comes to the floor. In today's economy every penny counts, and
the value of the earned income tax credit is magnified.
I look forward to working with my colleagues to better educate,
protect,
[[Page S355]]
and empower taxpayers. I urge my colleagues to join me to increase
awareness of the earned-income tax credit.
Thank you very much, Mr. President.
I yield the floor, and I note the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. WARNER. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________