WASHINGTON (TIP): Sen. Sherrod Brown (D-OH) and Rep. Ro Khanna (D-CA) introduced joint legislation in the Senate and House on Sept 13 that would give working families a much-deserved wage boost to compensate for 40 years of wage stagnation. The Grow American Incomes Now (GAIN) Act would greatly expand the Earned Income Tax Credit (EITC) so that more working families and childless workers are eligible to receive it. More than 50 members of Congress are cosponsoring the bill.

The bill comes at a time when the Trump Administration and Republicans are supporting devastating budget cuts to programs that help working families in exchange for tax breaks for the very wealthy and big corporations.

The GAIN Act roughly doubles the EITC for working families and increases the credit for childless workers almost six-fold. 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.

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.

“Americans are working longer hours, but too many aren’t seeing that hard work reflected in their pay. And worse—our tax system can actually tax workers into poverty. That’s not how we grow our middle class or our economy,” said Sen. Sherrod Brown. “Updating the EITC will make sure all workers can keep more of the money they earned for their work.”

“The EITC is already proven at lifting people out of poverty. By strengthening it to reach more families and individuals, it can have a lasting impact on our economy,” said Rep. Ro Khanna. “In today’s age of automation and globalization, where work is sometimes seasonal and hours are often curtailed, this bill provides every hard-working American with a fair income for their labor.”

The bill 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. The bill also lowers the qualifying age for the EITC from 25 years old to 21 years old.