By Ali Mickelson

With such a high number of Americans living in poverty, the tax code is a key anti-poverty tool that Colorado lawmakers can put to good use.  A recent report by the Institute of Taxation and Economic Policy (ITEP), a non-partisan research group, discusses different ways that states are using their tax system to combat poverty. 

Some of the key steps recommended by ITEP include creating a state-level Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), which help working families make ends meet;  providing property tax rebates to low-income homeowners and renters; and creating tax credits that help relieve the disproportionate impact of sales and property taxes on low-income households. 

Colorado’s triggered reinstatement of the EITC and CTC is recognized in the report as a move forward in state anti-poverty tax policy.    However, opportunities still remain.  Colorado needs to make the EITC and CTC permanent and fully fund them for the long-term.  The state should also look at creating low-income housing incentives and additional credits targeted at low-income families. 

For the full report and more information on anti-poverty tax policies, please click here.