Home » Business » Expanded Earned Income Tax Credit (EITC) Would Benefit More Than 72,000 Low-Wage Older Workers in New York, Report Says

Expanded Earned Income Tax Credit (EITC) Would Benefit More Than 72,000 Low-Wage Older Workers in New York, Report Says

With many New York residents age 65 and older still working, the expansion would also remove age discrimination from state law

ALBANY, NEW YORKNew York State must end age discrimination that is written right into state law by expanding its Earned Income Tax Credit (EITC), a popular federal program credited with lifting Americans out of poverty. million people in the country, to include the growing number of older, low-wage state residents still in the workforce, AARP New York said today as it released a new report showing how an expanded EITC would benefit more of 72,000 adults over 65 years of age in the state.

The 2021 American Rescue Plan (ARP) temporarily expanded the federal EITC to include workers over age 64, providing a needed income boost to workers and families struggling to pay for basic needs during the pandemic. But the inclusion of workers 65 and older ended last year.

Currently, low-income workers age 65 and older do not receive any federal or New York State EITC benefits. That’s an “outdated socioeconomic and political environment” because a growing number of older New Yorkers are still working, and that group accounts for most of the future growth in the state’s labor market, according to the AARP New York-sponsored report, conducted by the New School’s Schwartz Center for Economic Policy Analysis.

“Older workers represent a growing proportion of the labor market and are more likely to work in poverty than their younger counterparts,” according to the report’s authors, economic policy researcher Aida Farmand y Professor Teresa Ghilarducci, director of the Schwartz Center. “More than 72,000 New York residents over age 64 without children could receive this benefit if lawmakers removed the age limit for the New York EITC.

“Without a permanent expansion of the EITC that ends age restrictions, a growing proportion of the population will not be able to access this key cash assistance program.”

Removing the age limit to include workers 64 and older could add between $44 million and $80 million in additional economic activity annually, according to the report.

Expanding EITC coverage to people age 65 and older would especially benefit women and workers of color, “who make up a sizable share of older workers in low-wage jobs,” the report said. Under the ARP expansion approved in 2021, 55% of senior beneficiaries were women and more than 22% were non-white.

“Preventing older workers from arbitrarily benefiting from the EITC once they turn 65, even while they continue to work, is government-sanctioned age discrimination, plain and simple,” he said. Beth Finkel, AARP New York State Director. “The perpetuation of this discrimination as more state residents remain in the workplace well into their 60s is an added insult. This program has been proven to help millions of people in the country escape poverty, and it needs to be expanded for low-income workers age 65 and older. This would provide a needed financial boost to low-income workers by putting more money directly into their pockets. That is why we urge the state legislature and Governor Hochul to work together during the 2024 legislative session to expand the EITC age limit.”

“Tens of thousands of low-income seniors in New York would see significant benefits from a state expansion of the EITC program,” he said. Aida Farmand, co-author of the report. “Other states have lifted their age limit for the program to help their older workers. “New York needs to join those states and do the same to give workers 65 and older a financial boost in the later years of their working careers.”

“Simply put, when you incentivize and reward work, it boosts our state and local economy, and with more and more older New Yorkers entering the workforce, modernizing and expanding our EITC makes sense,” the Assemblywoman said. Patricia Fahy, who has sponsored legislation that would expand the EITC to eliminate the age limit. “We need to pass my legislation expanding New York’s EITC, eliminate the age limit, and support New York’s older population still active in the workforce with this vital lifeline.”

“For more than a century, the New York Urban League has strived to improve the working lives of New York’s African American residents through training and education,” he said. Arva Rice, president and CEO of the New York Urban League. “Expanding the EITC in New York to include workers age 65 and older will help offset the low wages paid to so many people of color who struggle to make ends meet, even as they continue to work beyond the traditional age of retirement or are forced to re-enter the workforce due to financial problems.”

“All workers should have the same opportunity to achieve financial security,” he said. Hazel N. Dukes, president of the New York State Conference of the NAACP. “Expanding New York State’s EITC to include low-wage workers ages 64 and older would be an important step in stabilizing the financial well-being of New York’s older workers of color, who remain such a vital segment of the workforce.” state labor in a wide variety of companies.”

“For many Latinos and seniors in New York, the Earned Income Tax Credit is the difference between food on their plates and financial ruin. But in New York State, the EITC has a flaw—it ends at age 65, depriving older New York residents of much-needed income and tax relief. “Our seniors deserve better,” he said. Frankie Miranda, president and CEO of the Hispanic Federation. “Latino colleagues and older workers can pay for everyday expenses, such as medical bills, rent and food, due to the EITC, especially during difficult economic times. That is why we urge the State to extend the EITC age limit. It is right”.

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About AARP

AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering people ages 50 and older to choose how they live as they age. With a national presence, AARP strengthens communities and advocates for the issues that matter most to America’s more than 100 million adults age 50 and older and their families: health security, financial stability and personal fulfillment. AARP also works for consumers in the marketplace by proposing new solutions and enabling carefully chosen, high-quality products and services to carry the AARP name. Trusted source of news and information, AARP produces the nation’s most widely circulated publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/ (in English), www.aarp.org/espanol (in Spanish) or follow us at @AARP, @AARPenEspanol, and @AARPadvocates on social media.


2023-11-17 16:11:46
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