In the Senate, we’ve unanimously approved a bill to give more than 260,000 Iowa households a boost in their state tax return, including the families of 37 percent of Iowa’s children.

Boosting the Earned Income Tax Credit (EITC) supports working families, places value on raising children and puts money into local economies. That’s why we made raising Iowa’s EITC our first priority for tax reform this year.

Senate File 2161 is a $54 million tax cut that increases Iowa’s EITC from 7 percent of the federal EITC to 13 percent in the 2012 tax year, 15 percent in 2013 and to 20 percent in 2014.

Republican and Democratic legislators and many experts agree that Earned Income Tax Credit is one of the best anti-poverty programs in the nation. Iowa is one of only six states that taxes families earning less than poverty-level wages, which is one reason the United Way of Iowa has made increasing the state EITC a high priority.

If new legislation becomes law, more than 260,000 Iowa households could see an increase in their state tax return, including the families of 37 percent of Iowa’s children.

The Senate Ways & Means Committee has approved Senate Study Bill 3116 to increase Iowa’s Earned Income Tax Credit (EITC) from 7 percent of the federal EITC to 13 percent.

Last year, the Iowa Legislature twice approved a similar tax cut for Iowa’s working families, once by unanimous votes in the Iowa Senate and the Iowa House. Governor Branstad, however, vetoed the legislation twice.

The Iowa Senate has approved three more bills that add to our growing list of tools to help create local jobs.

Senate File 506 will benefit 60,000 Iowa businesses with 10 or fewer employees by offering a tax credit to those that provide employee health insurance. Small businesses pay 18 percent more than large businesses for the same coverage. In addition, health insurance premiums have gone up three times faster than wages in the last 10 years.