[Public Papers of the Presidents of the United States: William J. Clinton (1994, Book I)]
[March 9, 1994]
[Pages 413-414]
[From the U.S. Government Publishing Office www.gpo.gov]



Memorandum on the Earned-Income Tax Credit
March 9, 1994

Memorandum for All Cabinet Secretaries and Agency Heads

Subject: Earned Income Tax Credit Directive

    Last year, we fought for, and won, a major expansion of the earned 
income tax credit (EITC) through enactment of the Omnibus Budget 
Reconciliation Act of 1993. This credit will help millions of workers 
and is a cornerstone of our effort to reform the welfare system and make 
work pay.
    We must ensure that all workers in America who are eligible to 
receive the EITC are made aware of the program and of the advance 
payment option. It has been estimated that approximately 2 million of 
those eligible for the EITC miss the opportunity to claim it because 
they do not even realize that the EITC is available to them. 
Furthermore, less than 1 percent of those who claimed EITC in past years 
took advantage of the advanced payment option, which would allow some 
participants to obtain up to 60 percent of their credit in their 
paychecks rather than waiting until the filing of their tax return to 
receive it.

[[Page 414]]

    In our own departments and agencies, we must begin to spread the 
word about the EITC and help eligible workers meet the day-to-day 
expenses of raising a family by claiming the advanced EITC. There are 
hundreds of thousands of workers within the executive branch alone who 
are potentially eligible for the EITC. Many personnel and payroll 
offices within your bureaus and agencies are not aware of the credit, 
and have not informed Federal employees about the possibility of 
obtaining the credit in their paychecks under the advance payment 
option.
    You are directed to instruct all bureau heads, personnel, and 
payroll office managers in your purview to take measures, in cooperation 
with the Department of the Treasury, the Internal Revenue Service, and 
the Office of Personnel Management, to ensure that all potentially 
eligible employees are informed about the EITC and can claim it on an 
advance basis through their paychecks.
    I also strongly encourage you and your bureau heads to join me over 
the next several weeks in incorporating these important EITC messages 
into speeches and presentations that you may be making before the 
public. Your efforts in your organization will complement an 
Administration campaign to promote the EITC with business leaders, 
members of Congress, State and local government leaders, and EITC 
eligibles. Through these actions, we hope to markedly improve the 
effectiveness of an already successful EITC program, rewarding work, and 
laying a foundation to end welfare as we know it.

                                                      William J. Clinton

Note: This memorandum was made available by the Office of the Press 
Secretary but was not issued as a White House press release.