The Progressives Making the Case for Monthly Tax Refunds

For the millions of Americans who claim the Earned Income Tax Credit, April 15 is just another day. Taxpayers who get this credit, which gives a refund to low- and moderate-income households (and more to those with children), are often among the first to file their federal income taxes, meaning that many or most of them got this chore over with back in late January, at the start of tax season.

That’s because the Earned Income Tax Credit isn’t merely a bonus. It’s part of the social safety net. Many families rely on the refund for critical household planning. More than 25 million tax filers claimed the Earned Income Tax Credit last year, getting an average refund of $2,488. That cash goes toward overdue utilities, vehicle repairs, and other essentials. Research from the Federal Reserve shows that taxpayers who get this credit see a non-trivial boost in their household spending on food after they receive their refunds. The EITC helps Americans replenish their larders after winter.