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Former US Army sergeant released from prison after Texas Gov. Abbott pardons him for 2020 fatal Black Lives Matter protest shooting; Ohio gears up for legal marijuana sales for adult use; Winnebago Tribe apprenticeships prepare students, build workforce; New FERC rule helps Virginia upgrade transmission infrastructure.

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Governor to Sign Tax Breaks for Working Families

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Tuesday, January 10, 2012   

SPRINGFIELD, Ill. - Governor Pat Quinn is scheduled to sign a bill into law today that will increase the Earned Income Tax Credit (EITC) for low-income working families in the state.

Last month, Quinn signed a bill giving tax breaks to Sears and the Chicago Mercantile Exchange to keep them from leaving Illinois. It was part of a deal among legislative leaders. In exchange for the corporate tax breaks, Republican leaders agreed to drop opposition to a higher EITC, and the measure providing that, Senate Bill 400, is the one to be signed today.

Kelley Talbot, assistant director of policy for the organization Voices for Illinois Children, says it's good news for those who are struggling.

"This is a victory for parents and working families who play by the rules."

The bill doubles the Earned Income Tax Credit over time. For a family with three children earning around $30,000 annually, it will mean about 200 dollars more a year.

According to a recent study by the Heartland Alliance, more than one million Illinoisans now receive the Earned Income Tax Credit. Talbot explains that it's a credit for those at the bottom of the pay scale who often have to make sacrifices just to keep food on the table.

"Now, parents will be able to stretch their hard-earned income just a little bit further as they take care of their kids."

Experts say increasing the tax credit for low-income families should help the state's economy as well, as Talbot explains.

"Families do spend the credit on basic needs that they have in their communities. You see that money go back into local communities and act as an economic boost."

Besides doubling the tax credit, this bill will also increase the standard deduction for everyone by 50 dollars, and tie it to the inflation rate.


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