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Newsom Doubled Down on a Tax Credit for the Working Poor. Why Does He Think It Will Work?

Publication: CalMatters

When Berenice Solis of Bakersfield received a direct deposit of $6,775 from the government this past March, her mind raced.

She could finally take her three daughters, ages 4, 6 and 9, on a trip to Disneyland. Then she thought about her goal of buying a house. Or upgrading her car, which is starting to feel cramped as her girls grow.

“I couldn’t believe it at first,” said Solis, 40, a part-time teacher’s aide in Bakersfield. Her husband, Jose, is an elementary school teacher. “I was like, ‘Oh my God, I can’t believe this is the money we’re going to get!’ We can do so much.”

The money came from the Earned Income Tax Credit, one of the country’s principal tools to boost the incomes of low-wage workers who are struggling to make ends meet. 

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“There are so many folks really living on the edge in California today,” said Assemblyman Phil Ting, a San Francisco Democrat who championed expansion of the credit,  after lawmakers voted to pass the governor’s expansion last week. “Having a few hundred more dollars or even a few thousand more dollars makes a huge difference to their everyday lives.”