Sending Office: Honorable Ro Khanna
Sent By:

My boss believes it’s better to put more money back in the pockets of everyday people rather than give even more perks to corporations and the wealthiest in our nation. Economic experts like Gene Sperling, who advised two presidents, agree that an Earned
Income Tax Credit expansion is sound policy:
. If you have any questions or would like additional information on H.R. 3757, please let me know. Thanks much, Chris

Let’s Raise the Wages of Working Families:

Cosponsor H.R. 3757, the Grow American Incomes Now (GAIN) Act

House Cosponsors (54): Reps. Beatty, Beyer, Boyle, Brady, Brownley, Butterfield, Cartwright, Cicilline, Clarke, Cohen, Conyers, Cummings, DeFazio, Delaney, DeSaulnier, Dingell, Ellison, Evans, Fudge, Garamendi, Gonzalez,
Grijalva, Gutiérrez, Hanabusa, Hastings, Jackson Lee, Jayapal, Jeffries, Kelly, Lee, Sean Patrick Maloney, Moore, Nadler, Napolitano, Norcross, Norton, Pallone, Pocan, Raskin, Roybal-Allard, Rush, Ryan (D-OH), Schakowsky, Scott (D-VA), Serrano, Sires, Slaughter,
Soto, Speier, Velazquez, Waters, Watson Coleman, Welch, Wilson (D-FL)

 October 24, 2017

Dear Colleague:

Please join me in cosponsoring H.R. 3757, the Grow American Incomes Now (GAIN) Act, a bicameral transformational expansion of the Earned Income Tax Credit (EITC) to compensate for the loss of wages of the bottom twenty percent of wage earners since 1979.
At a time when the Trump Administration and Republicans have proposed devastating budget cuts to programs that help working families and dramatically cutting taxes for the very wealthy and big corporations, this legislation will help grow both our middle class
and economy. 

As you know, the EITC is a refundable federal income tax credit for low-income working individuals and families. This tax credit is designed to “make work pay” by supplementing low-wage work to benefit both workers and their dependents that may rely on limited
income. The EITC has enjoyed broad bipartisan support over the years with Presidents of both parties signing major expansions into law.

In recent years, there have been expansion efforts by then Ways and Means Committee Chairman Ryan, Ways and Means Committee Ranking Member Neal, and former President Obama. In fact, I’m a proud cosponsor of RM Neal’s H.R. 822, the Earned Income Tax Credit
Improvement and Simplification Act. Their aim, and the next step to strengthening the EITC, is to increase the credit for childless workers to an amount closer to that for families with children to augment the direct work incentive and help counter poverty
among the working poor. That is why H.R. 3757 does just that, while also lowering the qualifying age for the EITC from 25 years old to 21 years old.

The GAIN Act roughly doubles the EITC for working families and increases the credit for childless workers almost sixfold. Under the proposal, the maximum tax credit available increases to $12,131 for families with three or more qualifying children; $10,783
with two qualifying children; $6,528 with one qualifying child; and $3,000 with no qualifying children. Currently, a family of three can receive a maximum credit of $6,318 and someone with no children can receive at most a $510 tax credit.  

Specifically, H.R. 3757 would increase the maximum credit from:

  • $510 with no qualifying children to $3,000;
  • $3,400 with one qualifying child to $6,528;
  • $5,616 with two qualifying children to $10,783; and
  • $6,318 with three or more qualifying children to $12,131.

The proposed EITC expansion would also be phased out at higher income levels and remain fully refundable. It would allow for a worker with no children who makes up to $37,113 annually to still be eligible to receive the tax credit and covers a family with
three or more children making up to $75,940 a year to receive the EITC. The current maximum qualifying income to receive the EITC is $15,010 for childless workers and $48,340 for families with three or more children. 

Crafted with assistance from the Center on Budget and Policy Priorities and evaluated by the Urban-Brookings Tax Policy Center and the Center for American Progress, H.R. 3757 will jumpstart consumer demand and increase overall economic growth. As stated
Neil Irwin describing a similar plan
, the EITC expansion will “replace every dime of income that the bottom 20 percent of earners have lost compared with the average family since 1979.”

The GAIN Act also recognizes many Americans live paycheck to paycheck and includes a provision that would provide an Early Refund EITC as an alternative to payday loans and other predatory lending products. EITC advances would be capped at $500 each taxable
year and would be subtracted from the recipient’s total credit when they file their annual tax return. Instead of receiving the lump sum once a year, this early refund makes it easier for working families and individuals to pay their monthly bills and provide
financial security.

If you would like to cosponsor H.R. 3757, or have any questions, please contact Chris Schloesser in my office at



Ro Khanna

Member of Congress


Related Legislative Issues

Selected legislative information: Economy, Family Issues, Labor, Taxes

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