Tax Credits

Congress and the administration need to ensure that our tax policies help the most vulnerable Americans. Refundable tax credits, such as the earned income tax credit (EITC) and child tax credit (CTC), help to prevent millions of Americans from falling into or deeper into poverty. 

In 2015, Congress passed a tax deal that made permanent improvements to the EITC and CTC. With this deal, 16 million people — including 8 million children — will not fall into poverty. This is the most significant anti-poverty policy Congress has passed in the past 20 years. 

The EITC significantly benefits low-income workers with children. However, low-income childless workers — that is, adults without children and non-custodial parents — receive little or nothing from the EITC. As a result, childless workers are the sole group that the federal tax system taxes deeper into poverty. According to the Center on Budget and Policy Priorities, in 2012, federal income and payroll taxes pushed 1.2 million childless workers into poverty and another 5.8 million deeper into poverty.

This situation is especially hard for younger low-income workers. Currently, all childless workers under age 25 are ineligible for the EITC, so low-income young people entering the workforce — who have disturbingly low labor-force participation rates — receive none of the EITC’s proven benefits, such as promoting work, alleviating poverty, and supplementing low wages.   

Supporting policies such as lowering the eligibility age to 21 and raising the maximum credit for EITC, we could lift at least half a million people out of poverty and prevent at least 10 million more from falling deeper into poverty. 

"Jesus said ...
'You give them something to eat.'"

Matthew 14:16

Tools
from our Resource Library

For Education

  • The Nourishing Effect

    Hunger and food insecurity add at least $160 billion a year to U.S. healthcare costs.

  • The Impacts of Proposed Fiscal Year 2018 Budget Cuts on the Latino Community

    To end hunger and poverty in the United States by 2030, our country needs to support a budget that improves the lives of men, women, and children. Unfortunately, the Trump administration and Congress are proposing dramatic cuts to programs that promote economic opportunity or provide food...

  • The Dream Act of 2017 (S. 1615 & H.R. 3440)

    Overview

    The United States is a nation of immigrants. Throughout its history, people have moved here from all over the world and have contributed to their communities and our national life. Today, as in the past, immigrants are also creating prosperity for this nation. 

    ...

For Faith

  • The Bible on Health as a Hunger Issue

    A brief examination of the biblical approach to health as a hunger issue.

    Includes an introduction to the issue, a Scriptural reflection, practical actions you can take, and a prayer.

  • Bread Newsletter January 2016

    In this issue: Another Great Year for Bread; Catholics Begin Observance of Holy Year of Mercy; Serving on ‘God’s Wave Length’ for 39 Years; and more.
     

  • Interfaith Religious Leaders’ Pledge to End Hunger

    A wide array of the nation’s faith leaders have come together on the eve of Pope Francis’ arrival in the United States to commit ourselves to encourage our communities to work for the end of hunger by 2030 and, toward that end, for a shift in U.S. national priorities.

    We are deeply pleased...

For Advocacy

  • Grassroots Advocacy Toolkit

    A set of how-to sheets for carrying out advocacy and fact sheets on the current issues Bread for the World is working on.

    For new and current Bread grassroots hunger activists.

    Ideal as a starter toolkit for new Bread activists or as a set of updates for current activists.

    ...

  • The State of Black Poverty: A Pan-African Millennial Perspective on Ending Hunger by 2030

    Over the past year and a half, about two-dozen young adults from the United States and countries in Africa and the Caribbean, have gathered virtually and in person to reflect on the effects of hunger and poverty in black communities. The working group has been considering socio-political and...

  • Fact Sheet: The Hunger-Medicaid Connection

    Congress is considering proposals that would jeopardize healthcare coverage for millions of poor and near-poor adults and children. 

    Legislation under consideration in the House and Senate would gut...