I-732 creates big benefits for low income households

Thank you to the Olympian for recognizing our moral obligation to act on climate change and recommending that voters say Yes to the I-732 carbon tax swap. By saying that I-732 would only make our tax system “slightly fairer”, however, you are greatly understating the benefits of I-732.

Social justice groups have for years campaigned unsuccessfully for the state to provide a 10% match of the federal Earned Income Tax Credit, one of the most effective anti-poverty programs in the country. I-732 goes one step — actually, two and a half steps — beyond that, funding a 25% match of the EITC that will provide up to $1500 a year for 460,000 working families in the state. This will be a transformational policy in fixing the most regressive state tax system in the country.

What makes our tax system so regressive? The high sales tax. I-732 addresses that, too, by directing most of the carbon tax revenue to cutting the state sales tax by a full point. This is another step towards a more equitable tax system, and moreover the sales tax cut will provide hundreds of dollars a year in benefits to all households and businesses across the state. (Try it yourself by clicking the “About” button on yeson732.org)

Finally, remember that a better tax system is just the icing on the cake for I-732. We all know that we need to get serious about climate change, and I-732 would create one of the strongest climate policies in the world. Vote yes.

This story was originally published October 19, 2016 at 5:20 PM with the headline "I-732 creates big benefits for low income households."