iowa fiscal partnership snapshot: earned income tax creditiowa fiscal partnership snapshot: earned...

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Iowa Fiscal Partnership SNAPSHOT: Earned Income Tax Credit Why the EITC matters to Iowa working families Even with the Earned Income Tax Credit, Iowa’s tax system is skewed against lower-income taxpayers. The regressive impact of property and sales taxes causes low- income earners to pay a greater share of their meager income in tax. These same families benefit from Iowa’s EITC. Who benefits from the EITC By county, counties shaded in green are below the state average; counties shaded in yellow are above the state average, based on percentage of Iowa income tax returns claiming the EITC.

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Page 1: Iowa Fiscal Partnership SNAPSHOT: Earned Income Tax CreditIowa Fiscal Partnership SNAPSHOT: Earned Income Tax Credit Why the EITC matters to Iowa working families Even with the Earned

Iowa Fiscal Partnership SNAPSHOT: Earned Income Tax Credit

WhytheEITCmatterstoIowaworkingfamiliesEvenwiththeEarnedIncomeTaxCredit,Iowa’staxsystemisskewedagainstlower-incometaxpayers.Theregressiveimpactofpropertyandsalestaxescauseslow-incomeearnerstopayagreatershareoftheirmeagerincomeintax.ThesesamefamiliesbenefitfromIowa’sEITC.WhobenefitsfromtheEITCBycounty,countiesshadedingreenarebelowthestateaverage;countiesshadedinyellowareabovethestateaverage,basedonpercentageofIowaincometaxreturnsclaimingtheEITC.

Page 2: Iowa Fiscal Partnership SNAPSHOT: Earned Income Tax CreditIowa Fiscal Partnership SNAPSHOT: Earned Income Tax Credit Why the EITC matters to Iowa working families Even with the Earned

EITC filers by Iowa legislative district, 2013 (latest available from IRS)

Source: Brookings Institution analysis of IRS data.