On July 24, House Budget Committee Chairman Paul Ryan (R-WI), released a discussion draft of his “Expanding Opportunity in America” plan, intended to address state and federal programs for fighting poverty. Among the principal components of the plan is an expansion of the Earned Income Tax Credit (EITC). The proposal would double the maximum credit for childless households, double the phase-in and phase-out rates of the credit, increase the threshold at which the credit begins to phase-out, and decrease the minimum age for childless households claiming the credit from 25 to 21. President Obama has proposed the same expansion of the EITC (with the exception that the President’s proposal increases the maximum eligibility age from 64 to 67).
The discussion draft of the plan can be accessed here.