Lyons Applauds EITC Inclusion in Budget

April 18, 2000

LaGrange . . . State Representative Eileen Lyons (R-LaGrange) lauded the inclusion of the Earned Income Tax Credit (EITC) in the budget agreement between the governor and the General Assembly.  Lyons worked hard to get the EITC included in the budget, making sure that over 17,000 residents in her district who can take advantage of the benefit will be able to do so.

  The EITC applies to taxpayers that are eligible for the federal earned income tax credit.  It will give them a state credit equal to 5% of their federal tax credit.  A family of four with wages of about $20,000 receives approximately $2,000 from the federal government and next year will receive a tax credit of about $100 from Illinois.

  At the federal level, the EITC was responsible for lifting 4.3 million people out of poverty, including 2.2 million children, in 1997 alone.

  In Illinois, the EITC will help reduce the tax burden for over half a million residents. The Illinois initiative will serve as an important anti-poverty companion to the federal credit.  It is expected that approximately $35 million in tax credits will be issued for the year 2000 under the EITC.

  “Reaching an agreement on the EITC is an important step for Illinois,” said Lyons.  “The EITC gives help to those who need it the most.  Working families who are at the lowest rank in income will be able to take advantage of this and will receive significant help.”

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