EXTENDING THE EARNED INCOME TAX CREDIT: HOW THE ECONOMIC SECURITY PROJECT’S COST-OF-LIVING REFUND WOULD AFFECT FAMILY CAREGIVERS

In recognition of the important work family caregivers do, the Economic Security Project (ESP) has
proposed that they be eligible for the cost-of-living refund, an expansion of the earned income tax
credit (EITC). Among other changes to the EITC, the cost-of-living refund would extend benefits to
family caregivers who have little or no earnings from paid employment, essentially expanding the kinds
of work eligible for tax benefits. We estimate the caregiver provisions of the proposal would increase
tax benefits for 2.6 million families in 2020. The proposal would provide $2,830 billion in tax benefits
over fiscal years 2019–28;
1 extending full benefits to low-income family caregivers would account for
about $180 billion2 of those costs. Benefits from the caregiver provision would be highly concentrated
among very low-income families.