Jacquelyn Martin/AP
President Obama is to propose expanding the Earned Income Tax Credit to millions of childless workers and drop the age to be eligible for the credit from 25 to 21.
WASHINGTON — President Obama wants to expand a tax credit for working families to 13.5 million childless workers and young adults, a step the White House says would lift 500,000 people out of poverty.
The call to vastly expand the Earned Income Tax Credit, which promotes and reduces poverty, is among series of proposals in Obama’s 2015 budget plan set to be released Tuesday that take aim at income inequality, which Obama calls his top priority for the rest of his presidency.
The plan, along with most of Obama’s budget, has little chance with congressional Republicans.
House Republicans are offering their own budget expected to cut entitlement programs. Both documents will serve more as party blueprints for November’s midterm election than as legislative outlines.
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Obama’s budget will also call for new spending on education, job training and infrastructure. And he’s pushing Congress to raise the minimum wage and extend jobless benefits.
The earned income proposal would expand tax breaks for childless workers and drop from 25 to 21 the age at which the credit is available.
Those changes would cut taxes for 7.7 million low-wage workers and make 5.8 million people, including 3.3 million workers between ages 21 to 24, eligible for the credit for the first time.
The $ 60 billion cost of the plan would be paid for by ending loopholes that let high-income earners reduce their income and payroll taxes.
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