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Fact Sheet: Help Arkansas Working Families Become Self-Sufficient: It’s Time to Support a State Earned Income Tax Credit

A state Earned Income Tax Credit (EITC) would provide tax relief to hard-working, low-income families, helping them close the gap between what they earn and what they need to make ends meet. A state EITC, piggybacking on the federal EITC, would help families and put millions of dollars back into the local economy. In 2005, 280,000 Arkansas households claimed the federal EITC, returning $566 million to low-wage earners. Twenty-four states plus the District of Columbia have enacted state EITCs, with Washington state being the most recent state to create one earlier this month. It is time for Arkansas to follow their lead and enact a state EITC.