- Increased scrutiny of tax credits could mean more audits for Wisconsin’s poor, By Dee J. Hall, April 12, 2012, Wisconsin State Journal: “As Tax Day approaches, some low-income taxpayers in Wisconsin will notice smaller refunds – and increased scrutiny on claimed tax credits – because of changes in state law and a new effort by the Wisconsin Department of Revenue to ferret out fraud. Wisconsin is the first state chosen under a federal push to detect mistakes and fraud in the earned income tax credit program, Revenue spokeswoman Stephanie Marquis said. The credit, available from both the state and federal governments, is designed to provide relief to low-wage taxpayers and to encourage work by allowing them to claim refunds, even if they have paid little or no income taxes. This year, Wisconsin cut the amount of credit available to such taxpayers by $27.3 million to $113.3 million. The Legislature reduced the projected credit for next year by $28.9 million to $119.5 million…”
- Branstad would sign earned income tax credit to get property tax deal, By Jason Clayworth and Donnelle Eller, April 5, 2012, Des Moines Register: “A long legislative freeze that has stalled progress on commercial property tax reform in Iowa showed signs Thursday of a political thaw. Gov. Terry Branstad said he would be willing to expand a tax break for Iowa’s poorest working families if he can get an agreement with Democrats to cut commercial and industrial property taxes. And just minutes later, Senate Majority Leader Michael Gronstal said his party wouldn’t insist that the breaks known as earned income tax credits be signed into law before negotiating on the property tax side of the give and take. Branstad twice last year vetoed the tax breaks for working families, frustrating members of both parties. Sen. Joe Bolkcom, a key Democrat involved in the debate, stood on the Senate floor Jan. 31 and vowed that no commercial property tax cut would happen without the governor’s signature on a bill to increase tax breaks for working families…”
Poverty-related issues in the news, from the Institute for Research on Poverty