Better jobs would help the state budget, too

Underlying the political fight last session over the Earned Income Tax Credit (EITC) was the fact that thousands of Vermonters work at jobs that don’t pay enough for them to meet their families’ basic needs. Gov. Peter Shumlin tried last winter to cut Vermont’s EITC, complaining that it cost too much money. But the administration directed all of its criticism at the people working for low wages who qualified for the tax credit. The governor never once pointed a finger at the low-wage employers.

The governor laid out two goals last January. He said he wanted to improve early childhood development, specifically by expanding child care for low-income families. And to pay for the expanded child care, he wanted to lower the cost of the EITC by simply cutting the amount a working family could receive. But cutting income to working families would have undermined early childhood development.

With better paying jobs, the governor could advance both his goals. With adequate wages, working parents would have enough to provide for their children, and they wouldn’t need the EITC to supplement their income.  Fewer Vermonters who need the EITC means more money for the state budget.

In fact, jobs that pay adequate wages would be better for everyone, as this short video explains: