Congressman Dennis Cardoza
18th Congressional District of California

"Many Valley residents are simply not aware that the Earned Income Tax Credit exists and are forfeiting a sizeable tax savings," Cardoza said. "The program was designed as a powerful incentive to keep low-income Americans off welfare and in the workforce, so it’s important that we make it work by reminding people that it exists."

A recent study by the Brookings Institution found that a high percentage of Central Valley residents – in some areas more than 40 percent – are eligible for the EITC, but that as many as 20 percent of those eligible do not file EITC claims on their tax forms. As a result, millions of dollars that should have gone back into the pockets of working families in recent years has instead remained in government coffers.

This problem has become more significant as an economic downturn caused the number of low-wage workers who qualified for EITC to rise eight percent between 2000 and 2002.

"We must do a better job of ensuring that existing tax initiatives are utilized to the fullest extent, especially when more people are struggling," Cardoza said. "This requires a community effort, and I hope that employers will join me in increasing public awareness of the Earned Income Tax Credit."

Congress enacted EITC in 1975 with bipartisan support. Its broad appeal stems from the fact that it rewards those who choose to work low-wage jobs instead of benefiting from federal welfare programs.

Tax forms can be obtained at any of Cardoza’s district offices.