Liberal group: States should cut taxes for working poor

States should implement or expand their own versions of the Earned Income Tax Credit to help the working poor, according to a new study from a liberal group.

{mosads}The Institute on Taxation and Economic Policy says that state versions of the EITC would help battle what they call regressive tax systems at the state level.

Right now, half of states and Washington, D.C., have their own EITC, though the generosity of the credit varies wildly. 

For four of those states, the credit isn’t refundable. ITEP proposes that states make sure the credit is refundable, and that states use the same eligibility requirements as the federal credit.

The report comes as governors and lawmakers have sought to overhaul their state’s tax codes, and cut taxes as the economy continues its slow, steady climb.

President Obama and congressional Democrats are also pushing to expand the federal EITC, to give more assistance to workers without children.