ANNAPOLIS, MD (February 22, 2007) - Emphasizing the importance of encouraging working Marylanders and supporting families, Comptroller Peter Franchot today testified before the House Ways and Means Committee to endorse House Bill 223. The proposed legislation, sponsored by Delegate Shelia Hixson, would enhance the state's Refundable Earned Income Tax Credit, expanding it from 20 to 25 percent of the federal credit.

"The Earned Income Tax Credit is the most effective anti-poverty tool we have," said Comptroller Franchot. "Across this state there are parents and children living a better life because of the Earned Income Tax Credit. This credit rewards work and we should be encouraging our friends and neighbors who are determined to work their way up the economic ladder. It is absolutely in our state's best financial interest to encourage people to find jobs and pursue their career dreams."

The Earned Income Tax Credit (EITC) is a significant tool for combating poverty and helping working families in Maryland move toward financial self-sufficiency. Nationally, EITC provides more than $40 billion per year to 22 million working families, lifting 4.4 million Americans out of poverty. In Maryland, the federal EITC brings over $600 million a year to 340,000 working families, and the state-level EITC adds another $150 million.

The EITC supports major public goals: welfare reform, community development, and workforce development initiatives.

"The EITC rewards work over welfare and provides the necessary additional income to help make entry-level jobs a viable alternative to welfare," said Jennifer Williams, Coordinator of the Maryland CASH Campaign.

The Maryland CASH Campaign is working to ensure that all eligible Marylanders know about the EITC and know how to claim it. Toward that end, the campaign works with local partners to run free tax preparation services for low- and moderate-income taxpayers, statewide.

Nationwide, the EITC distributes more money than either Temporary Assistance for Needy Families (TANF) or Food Stamps and, in combination with the smaller Child Tax Credit, is almost as much as both these programs combined.

To learn more about the Comptroller's Office, visit: www.marylandtaxes.com.

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Contact: Joseph Shapiro, 410-260-7305