Download this factsheet (Oct. 2019; 2 pages; pdf)

Improving the Working Families Tax Credit would put more money back into the hands of New Mexico’s hard-working families – and the businesses where they will spend it.

 

 

Benefits of the WFTC

  • Proven to incentivize work and allow families to purchase necessities
  • Businesses benefit too as the refunds are spent quickly and locally
  • It’s a common sense, bi-partisan solution to improve health and well-being for New Mexico families

Policy Recommendations

  • Increase rate to 20% of EITC ($15 million)
  • Increase credit for parents of young children ($7-29 million)*
  • End exclusion of ITIN filers ($5-9 million)
  • End exclusion of young adult workers ($3 million)

Credits like the EITC and the WFTC are linked to improvements in:

Parents’ Health

  • Better mental health among mothers
  • Better overall health and decreased physical and mental stress among mothers with a high school diploma or less
  • Better physical health among men and women (ages 21 to 50) due to increased fruit consumption, decreased meat consumption, improved cholesterol, fewer colds, and more

Maternal and infant Health

  • Better pre- and post-pregnancy health
  • Fewer babies born at an unhealthy low weight

Children’s health

  • Increased insurance coverage rates among children (ages 6 to 14)
  • Better child health status as reported by mothers
  • Children have access to more regular meals

School performance

  • Improved test scores, particularly in math
  • Boosted high school graduation rates
  • Improved academic achievement that’s equivalent to getting two extra months of schooling

College Attendance

  • Boosted college enrollment rates
  • Increased college graduation rates as well as total years of education completed

Earnings in workforce

  • Higher long-term growth in earnings for single mothers (a mean increase of 17 percent in average annual earnings)
  • Increased hours worked and wages earned in women with children

Retirement benefits 

  • Increased retirement benefits earned through social security