Could a little improvement in a federal income tax credit somewhat reduce people’s dependence on predatory payday loans?

Could a little improvement in a federal income tax credit somewhat reduce people’s dependence on predatory payday loans?

Two Democrats challenge the payday-loan industry

That’s the hope of a tax that is new introduced Wednesday by Sen. Sherrod Brown and Rep. Ro Khanna. Their topline idea will be massively expand the Earned Income Tax Credit (EITC), gives low- and americans that are moderate-income subsidy for working. Many attention will concentrate on the price of the legislation, that could run near $1 trillion over ten years, although a precise estimate isn’t available. But hidden in the bill is really a change that is small may have big ramifications when it comes to cash advance industry, which takes care of short-term economic requirements by recharging extremely high rates of interest. Continue reading “Could a little improvement in a federal income tax credit somewhat reduce people’s dependence on predatory payday loans?”