Expanding the EIC in 2009

Fact Sheet
March 26, 2008

This tax season, Oregon will require a minimum wage worker who was employed full-time, year-round last year and supported one child to pay about $321 in state income taxes. That’s equivalent to about a month of food for this hard-working but financially insecure family.

Download a copy of this fact sheet:

Expanding the EIC in 2009 (PDF)


Related material:

OCPP's CenterPoints column for March 2008, A Tax System that Matches Oregon Values

Working, Poor, and Taxed,
April 4, 2007

Oregon’s Earned Income Credit, enacted in 1997, has certainly helped Oregon’s most vulnerable families. The minimum wage family of two described above would have owed about $484 in state income taxes – $163 more – without the tax credit. Because the credit is so small, though (it’s one of the nation’s smallest among states with such credits) Oregon income taxes are still taking a month’s worth of food off the table of vulnerable families. In a state where two-thirds of corporations pay just $10 a year in income taxes, that’s shameful.

By expanding the Earned Income Credit (EIC), Oregon can give a hand up to low-wage working families, rather than leaving them behind.

The Oregon EIC piggybacks on the federal EIC. Oregon families can receive a tax credit worth 6 percent of the federal credit. The amount of the state and federal credit varies with income and the number of children. A married-couple family of four earning between $11,750 and $17,400 in 2007 would have received the maximum benefit. Families with incomes up to about $40,000 can qualify for at least a small EIC, but nearly two-thirds of families who receive Oregon’s EIC earn less than $20,000 per year.

Oregon’s EIC ties for sixth smallest among 23 states (including the District of Columbia) with state EICs. At the same time, Oregon’s income tax on poor families of four ranks fifth highest among states, and its income tax on near-poor families of four ranks third highest.

Increasing the state EIC would benefit Oregon in three key ways:


Federal Earned Income Credit by State Senate District 2005

Senate district

# returns

# EIC returns

EIC share

EIC $

Share rank

1

51,078

8,563

16.8%

$14,777,035

7

2

52,849

9,238

17.5%

$15,970,002

6

3

54,936

8,857

16.1%

$14,982,124

10

4

50,143

7,130

14.2%

$11,385,131

16

5

50,606

8,165

16.1%

$13,488,569

8

6

49,948

8,024

16.1%

$13,609,572

11

7

54,596

7,859

14.4%

$12,304,121

14

8

51,791

6,036

11.7%

$9,505,062

24

9

49,652

7,081

14.3%

$12,857,635

15

10

50,569

7,024

13.9%

$12,644,573

17

11

48,270

9,115

18.9%

$17,760,546

2

12

50,585

7,287

14.4%

$13,151,819

13

13

51,986

6,032

11.6%

$10,905,127

25

14

55,620

5,561

10.0%

$9,311,527

27

15

54,554

6,380

11.7%

$11,607,058

23

16

52,790

7,020

13.3%

$11,886,984

20

17

63,600

5,482

8.6%

$7,909,851

28

18

58,829

4,590

7.8%

$6,000,975

29

19

55,893

3,415

6.1%

$4,928,079

30

20

53,078

6,095

11.5%

$10,367,875

26

21

56,522

7,208

12.8%

$9,213,015

22

22

52,746

8,507

16.1%

$13,341,598

9

23

51,573

7,117

13.8%

$11,243,450

18

24

53,500

9,926

18.6%

$18,846,935

3

25

51,518

7,647

14.8%

$14,168,248

12

26

52,136

6,967

13.4%

$12,237,763

19

27

66,666

8,648

13.0%

$14,392,381

21

28

50,451

9,123

18.1%

$16,168,009

5

29

46,092

8,522

18.5%

$15,660,857

4

30

44,684

9,055

20.3%

$16,810,744

1

Senate average

52,909

7,389

14.0%

$12,581,222

Source: Brookings Institution analysis of IRS data for tax year 2005

Federal Earned Income Credit by State House District 2005

House district

# returns

# EIC returns

EIC share

EIC $

Share rank

1

25,509

4,307

16.9%

$7,269,139

14

2

25,569

4,256

16.6%

$7,507,896

16

3

25,373

4,722

18.6%

$8,205,509

8

4

27,473

4,516

16.4%

$7,764,156

20

5

27,673

4,563

16.5%

$7,383,671

19

6

27,262

4,294

15.8%

$7,597,840

22

7

24,367

4,088

16.8%

$7,037,821

15

8

25,769

3,042

11.8%

$4,346,313

47

9

24,775

4,114

16.6%

$6,909,914

17

10

25,832

4,050

15.7%

$6,578,655

23

11

25,441

3,393

13.3%

$5,502,519

39

12

24,509

4,631

18.9%

$8,107,373

6

13

28,396

3,535

12.4%

$5,204,049

44

14

26,206

4,325

16.5%

$7,100,749

18

15

26,665

3,710

13.9%

$6,317,554

34

16

25,126

2,325

9.3%

$3,187,508

53

17

24,476

3,737

15.3%

$6,660,449

24

18

25,165

3,342

13.3%

$6,192,500

40

19

25,063

3,665

14.6%

$6,629,400

27

20

25,510

3,361

13.2%

$6,016,977

41

21

27,206

4,994

18.4%

$9,408,041

9

22

21,071

4,123

19.6%

$8,355,386

2

23

25,512

3,566

14.0%

$6,235,891

32

24

25,072

3,721

14.8%

$6,915,928

26

25

23,432

3,483

14.9%

$6,569,365

25

26

28,554

2,548

8.9%

$4,335,785

55

27

27,816

2,564

9.2%

$4,139,353

54

28

27,806

2,997

10.8%

$5,172,484

50

29

24,091

3,267

13.6%

$6,071,618

37

30

30,462

3,113

10.2%

$5,535,440

52

31

26,504

3,357

12.7%

$5,649,341

43

32

26,285

3,663

13.9%

$6,237,571

33

33

34,557

2,358

6.8%

$2,630,092

59

34

29,044

3,124

10.8%

$5,279,831

51

35

29,135

2,519

8.6%

$3,991,734

56

36

29,692

2,070

7.0%

$2,008,907

57

37

28,342

1,971

7.0%

$3,054,825

58

38

27,551

1,443

5.2%

$1,873,253

60

39

26,808

2,918

10.9%

$5,082,539

49

40

26,269

3,177

12.1%

$5,285,337

45

41

26,313

3,687

14.0%

$5,480,184

31

42

30,222

3,522

11.7%

$3,733,707

48

43

27,532

3,959

14.4%

$5,682,484

28

44

25,226

4,548

18.0%

$7,659,936

11

45

25,856

3,468

13.4%

$5,671,646

38

46

25,692

3,647

14.2%

$5,570,106

29

47

23,926

4,676

19.5%

$8,977,596

3

48

29,574

5,250

17.8%

$9,869,339

12

49

26,596

4,196

15.8%

$7,806,583

21

50

24,922

3,451

13.8%

$6,361,665

35

51

25,564

3,482

13.6%

$6,154,830

36

52

26,572

3,485

13.1%

$6,082,932

42

53

32,215

4,516

14.0%

$7,719,683

30

54

34,451

4,132

12.0%

$6,672,698

46

55

26,093

4,534

17.4%

$7,868,485

13

56

24,362

4,590

18.8%

$8,300,474

7

57

23,422

4,234

18.1%

$7,621,728

10

58

22,669

4,289

18.9%

$8,039,129

5

59

24,306

4,624

19.0%

$8,314,941

4

60

20,378

4,431

21.7%

$8,495,803

1

House average

26,454

3,695

14.0%

$6,290,611

Source: Brookings Institution analysis of IRS data for tax year 2005