Here’s Why Arkansas Needs a State EITC

Arkansas is part of a shrinking group of states that haven’t started using tax credits, like the Earned Income Tax Credit (EITC), to build their middle class and help people move permanently out of poverty. Arkansas remains among the worst states for overtaxing the poor. We ask low-income families to pay about twice the share of their income to state and local taxes compared to the top earners in our state. Tax credits like the EITC help reverse that. With a refundable state EITC, working families in Arkansas would keep more of what they earn and have a better shot at long-term financial stability and independence. Here’s what researchers in Arkansas and across the country are saying about the EITC:

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