Pass the Worker Relief and Credit Reform Act

Research shows that income insecurity among children and adults can significantly contribute to mental health disorders.[3] The Earned Income Tax Credit (EITC) provides qualified low to moderate-income workers and families with a tax break that varies with specific criteria, like income, marital status, number of children or dependents, and disability.[4] Pre-COVID-19 pandemic data demonstrate that the EITC lifts people above the poverty line—more than 5.5 million people, including nearly 3 million children.[5] In the 2021 tax year, 31 million workers and families received about $64 billion in EITC thanks to expanded eligibility criteria passed by Congress as part of the American Rescue Plan Act.[6]

The Worker Relief and Credit Reform Act (WRCR Act) would build upon the ARPA expansions and change the EITC criteria to better reflect the current economic conditions of students, workers, caregivers, and the elderly.[1] Proposed reforms include recognizing caregiving and higher education as work, expanding the eligibility age range, and providing taxpayers with assistance, safeguards, and educational and outreach programs.[1] Congress should pass the WRCR Act to lift more people out of poverty, improving the mental health individuals and families.