CALIFORNIA HAS THE TOOLS TO END POVERTY
Every day, millions of Californians face impossible choices: pay the rent or buy groceries? Pay for childcare or put gas in the car? With a rising cost of living, it's getting harder and harder to afford the high costs in the Golden State.
It doesn’t have to be this way. We know what it takes to solve California’s poverty crisis: direct cash assistance. Federal tax credits for struggling families helped cut child poverty in half during the COVID-19 pandemic.
California’s poverty rate increased to 18.9% in 2023, up from 16.4% in 2022 and 11.0% in 2021, according to new Census data. The state’s poverty rate was particularly high among Black and Latine Californians and the state continues to have the highest poverty rate out of the 50 states.
State leaders have made significant progress to address poverty over the past decade by building and strengthening refundable tax credits, including the California Earned Income Tax Credit (CalEITC), Young Child Tax Credit (YCTC), and Foster Youth Tax Credit (FYTC).
It’s time to build on what works and expand the path to prosperity for future generations.
Every year…
3.5 MILLION
people and families receive cash through their tax refunds, helping to put food on the table, pay rent, and save for the future
$1.4 Billion
in cash payments through tax credits is directed to millions of California families and individuals
$2.8 Billion
is invested in local economies throughout the state, supporting local jobs and businesses due to the multiplier effect
Despite this progress, millions of Californians continue to struggle to make ends meet. According to the Real Cost Measure study, one in three California households (over 3.7 million) do not earn enough to afford a decent standard of living. Of those struggling households, 97% have at least one working adult. Californians are demanding the relief they need to pay the bills now. It's time to expand the proven solution–tax credits.
Building a More Equitable and Prosperous California for All!
As it gets harder for families to get by and with new federal threats to vital anti-poverty programs, Californians are counting on the leadership of the Governor and state legislators to expand tax credit tools proven to help people, families, and communities thrive.
Prosper California’s Legislative & Budget Priorities
1. Increase the CalEITC Minimum from $1 to $300
2. Expand the YCTC to all CalEITC-eligible households
3. Establish $20 million annually for Free Tax Preparation Assistance, ITIN Application Support, and CalEITC Outreach and Education
GET INVOLVED!
Prosper California unites policy experts and community organizations to fight for policies that enhance economic well-being, promote equity, and foster inclusion across the state. Our efforts focus on increasing cash payments to uplift household incomes, improve quality of life, and create opportunities for all Californians.
Join Prosper California today to help build a California where all people have the cash and resources to thrive.
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