Looking back, it would have been easy for most to write off my future potential when I was a child and teenager. I spent the majority of my adolescence in foster care; when I was eight years old, my mom died following a life of neglect, poverty and addiction. I faced many uphill battles, but I am grateful to a community who led me on a journey that has taken me to where I am today. Many children, young people and families in our region face the same challenges I did.
African Americans encounter challenges when it comes to education, graduation rates, poverty and household income. Recent data indicates that, on average, the national high school graduation rate of black students (74.6 percent) is lower than the average rate of all students (83.2 percent). The national median household income for an African-American family in 2014 was $43,300, a significant difference compared to the $71,300 median income for a white family.
I believe there are ways we can help improve the lives of children and families. One of these is the establishment of a Missouri Earned Income Tax Credit (EITC).
United Way of Greater St. Louis supports the establishment of a Missouri EITC as an investment in the working families of the St. Louis region. A state EITC, modeled on the success of the federal EITC established in 1975, would be a tremendous benefit to thousands of low-wage workers in our community.
A Missouri EITC would encourage people to find and hold a steady job, and incentivize low-wage workers to increase their hours by providing a targeted tax cut based on earnings. An increase in earnings would greatly benefit African-American workers; according to an equity assessment by the Public Policy Research Center at the University of Missouri – St. Louis, there is an average $5 gap in hourly wages between white and black workers in the St. Louis region.
An increase in income for workers also translates to an improvement in our region’s workforce and more money into the pockets of working families. This money represents an additional investment in the local economy, as the majority of families who claim an EITC refund use it to pay for necessities like food, housing, transportation, child care and utilities.
Establishing a Missouri EITC would also help reduce and break the cycle of poverty. In 2015, the EITC lifted 6.5 million people nationwide out of poverty. Nationwide, one in five children live in poverty, and Missouri ranks 30th among states with the lowest poverty levels.
A Missouri EITC would positively impact nearly 500,000 families in our state. Establishing a Missouri EITC is a step in creating better opportunities for local workers and families, and that is something we all want.
Orvin Kimbrough is president and CEO of United Way of Greater St. Louis.
