A new analysis from the California Budget Project (CBP) looks at how California could create its own state EITC and shows that a refundable state credit could provide an economic boost for more than 3 million households. In addition, a state EITC would help rebalance California’s tax system, under which low-income families currently pay an outsize share of their incomes in state and local taxes, and would also strengthen our state’s social safety net.
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