The working families who would be eligible for WFOA already pay a much higher share of their income to state and local taxes than wealthy Arkansans. The lowest 20 percent of Arkansans pay the highest state and local tax rates as a share of their income than any other group (twice the rate as the top one percent). These credits simply help working families keep more of what they earn.
What was the problem?
What is the solution?
The Working Families Opportunity Act is a state version of the federal Earned Income Tax Credit, which is the nation’s most effective tool for reducing poverty among working families and children. WFOA will help low-income working families make ends meet.
The WFOA would provide the approximately 279,000 Arkansans who receive the federal Earned Income Tax Credit (EITC) each year with an additional 1.25 percent of their federal credit amount in 2016, 2.5 percent in 2017, and 5 percent by 2018.