On Friday, June 4, 2010, the Half in Ten Campaign sent a letter to members of Congress urging them to support funding for a supplemental federal poverty measure and for the development of an additional economic indicator reflecting what it takes to “make ends meet.” Already, 349 organizations from 42 states have signed onto this letter in support of this funding.

A new supplemental poverty measure will enhance the ability of policy makers to allocate resources by providing a more adequate account of the constraints American families face today and how well federal programs are working in providing pathways out of poverty. The additional “make ends meet” indicator would represent a more secure level of income for families not only to meet their basic needs, but to get a foothold on the bottom rungs of the middle class. Together these two indicators would provide better information to Members of Congress in crafting policy to promote family economic security.

Read the full text of the letter below.

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Even as the economy begins to recover, youth are continuing to struggle in the current job market. A May 31 New York Times story highlights the difficulties faced by high school and college students seeking work. In April, individuals aged 16-24 faced a record high unemployment rate of 19.6%. As the NYT reports, this is double the national average. In fact, unemployment rates are directly related to age, and the younger an individual, the less likely he or she is to have a job. Youth unemployment rates not only deprive young people and their families of an immediate source of income, but also lead to long-term consequences in lifetime earnings potential. Although the current high youth unemployment rates may have a number of causes, what is clear is that a number of young people want to get back into the job market. Action needs to be taken so that currently unemployed youth can stay off the streets this summer and develop critical work experience that will allow them to be competitive in future job markets.

One important way to provide these job opportunities for unemployed youth is through federal funding for summer jobs. In fact, last Friday, May 28, the House passed a bill (H.R. 4213) that provided for $1 billion in summer jobs funding. According to estimates by Northeastern researchers, this “$1 billion federal infusion” has the potential to “create some 300,000 job slots this summer.” The passage of this bill in the House marks an essential first step towards assisting unemployed youth in the months to come. However, this funding for summer jobs is not included in the Senate version of the tax extender bill. Fortunately, it is not yet too late—there is still a critical window of opportunity for funding for summer jobs to be included in the final version of this bill after the Senate returns from its Memorial Day recess. To provide economic opportunity and security to America’s youth in both the short run and the long term, the final Congressional version of the tax extender bill must support summer jobs funding of at least $1 billion. Without federal action, unemployed youth will remain, in the words of Adele McKeon, a career specialist with the Boston Private Industry Council, the “silent victims of the economy.”

One of the biggest antipoverty initiatives in President Barack Obama’s budget is his proposal to “make work pay” for low-income families through improvements to the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC), which will be considered after Memorial Day.

These two policies will make a huge difference in lifting working families out of poverty. However, improvements to both the CTC and the EITC are set to expire at the end of 2010 without immediate Congressional action to preserve and build upon these vital programs.

To learn more about what is at stake in the months to come and find out what you can do to help build the campaign to preserve these critical tax credits, listen to an English- or Spanish-language podcast with Reverend David Beckmann, president of Bread for the World.

Congress voted last year to help hardworking Americans make ends meet by expanding the Child Tax Credit and Earned Income Tax Credit. But the expansions to these critical tax credits will disappear if Congress does not act soon.

Contact your representative today to demand that they don’t let improvements to these credits expire.

Refundable tax credits like the EITC and CTC help ensure that work pays more than welfare, but they are at risk of losing much of their effectiveness. If Congress does not extend the improvements to the programs, a parent who works full time in a minimum wage position will have his or her annual credit reduced from $1,800 to $320 at the end of 2010. This would have a devastating effect on children in low-income families.

Research conducted by the Tax Policy Center reveals that 8 million children would lose the tax credit entirely if Congress allows the current Child Tax Credit improvements to expire, and an additional 10 million children would lose some of the credit. This change would lead as many as 600,000 more children to become poor and 4 million already poor children to fall deeper into poverty, according to the Center on Budget and Policy Priorities.

We must stand up to preserve the 2009 reforms to the Earned Income Tax Credit and Child Tax Credit. But there is room for additional federal leadership, as well. If the current improvement expires, a family’s first $13,000 in wages will not count toward calculating the Child Tax Credit. Congress should change the law so that all earnings count in calculating the credit. A family with two children will receive $2,000 if full-time, year-round minimum wage earnings are all counted; but the same family will receive only $312 if the improvements expire.

Contact your representative today to preserve and improve these essential programs.

May 25, 2010

What is the Earned Income Tax Credit and why does it matter?

The Earned Income Tax Credit is one of the single most important ways to make work pay. The EITC is a refundable federal income tax credit for low-wage working individuals and families. Refundable means that if a worker’s credit exceeds the amount of taxes owed, they can receive the difference in the form of a tax refund. Congress originally approved this program in 1975 in part to offset the burden of payroll taxes and to provide an incentive to work. Today, the EITC remains essential to promote economic security and allow low-income workers maintain a decent standard of living.

The EITC is a public policy that reflects basic values—at its core is the belief that individuals who work full time at minimum wage simply should not be forced to raise families below the poverty line. The EITC helps these Americans earn a sufficient amount so that work pays more than welfare. Parents who earn $10,000 to $20,000 each year are eligible under EITC for the highest credit, and the credit amount decreases as annual earnings increase.

Download this fact sheet (pdf)

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May 25, 2010

What is the Child Tax Credit and why does it matter?

The Child Tax Credit is one of the most important ways to protect families’ economic security. The CTC gives working parents additional funds to help them cope with the rising costs of maintaining a household and raising their children. Depending on the family’s earnings, the CTC allows families to claim up to $1,000 for each child. It represents an essential way to help families achieve and maintain their basic quality of life.

Yet the CTC’s effectiveness depends a great deal on how the credit is structured. The credit was not able to meet its full potential in the past because program rules often denied low-income families the full benefits of the credit. In fact, annual earnings below $13,000 were not considered in calculating tax credit, denying the credit to those who needed it most. Congress made sensible reforms to the CTC last year that allow families to count their yearly earnings below $13,000, but these changes are temporary and are scheduled to expire at the end of 2010.

An end of these improvements would be devastating for low-wage families across America. A parent who works full time in a minimum wage position will have his or her credit reduced from $1,800 to $320 at the end of 2010 if Congress does not make the change permanent. This reduction would seriously threaten the ability of low-income, hard-working families to maintain their economic security and self-sufficiency. And it would push 600,000 children of working families into poverty.

Download this fact sheet (pdf).

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The House of Representatives is expected tomorrow to consider H.R. 4213, also known as the “tax extenders” bill. This legislation provides much-needed help to American families and the economy by extending unemployment and COBRA health insurance benefits until the end of the year and providing fiscal relief to states to preserve critical health services and save jobs.

We asked Melissa Boteach, who is Manager of Half in Ten at the Center for American Progress Action Fund, to explain the tax extender provisions—what they are, why we need them, and what they will or won’t mean for the deficit.

Listen to the podcast (mp3)

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May 19th, 2010

What is the American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act?

The title may sound a bit unwieldy, but this bill is a bundle of provisions in H.R. 4213 that the House is expected to vote on this Thursday.

Among other provisions, the bill includes the extension of unemployment and COBRA health insurance benefits for those Americans hardest hit by the Great Recession, and fiscal relief to states to preserve critical health services and indirectly help prevent job losses of teachers, social service providers, firefighters, and police officers. It also includes an extension of the current rate of Medicare payments to doctors through the end of the year.

The bill is furthermore expected to postpone for one year the expiration of the Temporary Assistance for Needy Families emergency fund, which has allowed states to expand work focused programs and create subsidized jobs for families struggling during this recession. And it should include funding for a youth summer jobs program.

You may have heard the bill referred to as “tax extenders” because it includes a number of tax cuts Congress regularly extends. But, in this case, the bill also includes items that save and create jobs and protect the unemployed.

Download this memo (pdf)

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Call your representative TODAY: 1-877-442-6801, toll-free. Ask them to support a final jobs bill that:

• Extends unemployment insurance and COBRA health benefits
• Provides relief to states in the form of Medicaid funding
• Extends the Temporary Assistance for Needy Families Emergency Fund, which is slated to expire on September 30
• Includes funding for youth summer jobs

You can read a quick explanation of what’s in the bill and why each piece is important or listen to a podcast with more information.

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The economy has lost more than 8 million jobs since the recession began in December 2007, including many positions that provide critical services in communities across the country. Unemployment remains distressingly high even amid economic recovery. March’s unemployment report revealed an overall jobless rate of 9.7 percent; the rate was a staggering 16.5 percent among African Americans, 12.6 percent among Latinos, 11.3 percent among women who head families, and 26.1 percent among youth. Creating decent jobs and ensuring that low-income workers can access them will be at the heart of a national strategy to cut poverty in half in the next decade.

With such shocking levels of unemployment, now is the time for bold action. The Local Jobs for America Act (H.R. 4812), sponsored by Rep. George Miller (D-CA) and 150 other members of Congress, will create or save more than 1 million public and private sector jobs in local communities while restoring services our communities need badly.

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