A real Mother’s Day gift for working moms

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By KATE BREWSTER

This Mother’s Day lawmakers can give 53,000 Rhode Island mothers a gift that will be more meaningful than flowers or chocolates. It is the gift of an increase in the state’s Earned Income Tax Credit (EITC).

Working moms are never off the clock. From packing lunches in the morning to reading stories before bedtime, moms put in a lot more than a full day’s work. Governor Raimondo understands that, and she knows that lots of moms are working full-time in low-wage jobs that make it difficult to support their families. That is why the Governor’s budget includes an increase in the state EITC that would allow working moms to keep more of their paycheck.

Boosting family income means that moms are better able to pay for the very things that allow them to work, like tending to car repairs, covering child care expenses, or buying a new uniform. This spending happens right here in our local economy, which is important for our still struggling businesses.

Significant research on the benefits of the EITC found that filers work more, earn more, and are less likely to need to rely on welfare. Evidence also shows that the EITC has long-term benefits for moms and their kids. The children of parents who received the EITC are healthier and do better in school. Larger tax refunds also boost college enrollment by making college more affordable for low- and modest-income households. And some of the best news is that the boost in work effort and earnings extends into the next generation, with more work and higher earnings for children raised by moms who benefit from the added income the tax credits provide.

State Earned Income Tax Credits also help to make sure that the state tax code treats low-wage mothers more fairly. In Rhode Island, the lowest-income households contribute almost twice as much of their income towards state and local taxes as the wealthiest and our state now has the unfortunate distinction of having the fifth highest taxes on low-income households in the country. Increasing our state EITC is one of the best ways to provide targeted relief to those who need it most.

This Mother’s Day let’s honor our working moms in a meaningful way by putting more money in their pockets, helping them build a brighter future for themselves and their children.

Kate Brewster is executive director of the Economic Progress Institute, a research and advocacy organization.

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