Latino Tax Priorities

For a tax code that helps hardworking Americans build their dreams

While portions of the U.S. tax code were created to promote economic mobility and provide hardworking Americans the ability to build assets, the Tax Cuts and Jobs Act of 2017 (TCJA)— the largest tax overhaul since 1986—abandoned that fundamental goal.

It has instead provided massive tax cuts for the richest Americans and the largest corporations while pushing working families to fend for themselves.

As a result, Latinos overwhelmingly believe they were left out or left behind by the TCJA and feel the current tax code does not work for them. In polling conducted in 2018, eight out of 10 Latino voters said that the majority of tax cuts from the TCJA will go to the wealthy.

Several opportunities exist to amend the tax code to better support Hispanic communities through tax credits including the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), Child and Dependent Care Tax Credit (CDCTC), and Federal Saver’s Tax Credit (Saver’s Credit).

Child Tax Credit

The Child Tax Credit helps working families offset the cost of raising children by providing a tax credit of up to $2,000 per eligible child.

Earned Income Tax Credit

The Earned Income Tax Credit is a federal tax credit for low-and moderate-income working families that has long proven to be one of the nation’s most successful anti-poverty programs. The tax credit encourages work and provides essential refunds that decrease tax liabilities for low-income taxpayers.

Each year, the credit helps approximately 24 million working families make ends meet, lifting nearly 5 million people out of poverty.

Child and Dependent Care Tax Credit

The Child and Dependent Care Tax Credit is a non-refundable federal tax credit that helps families offset child or dependent care expenses they incur to work, look for work, or go to school.