Bipartisan Tax Compromise Benefits AAPI Community
President Obama’s proposed tax agreement has great benefits for Asian American Pacific Islander families, students and small businesses. Passage of this tax proposal will assist AAPI families who are already squeezed by the economic downturn and prevent them from having to pay higher taxes.This bipartisan compromise benefits our community by extending key provisions from the Recovery Act that benefits AAPI and other low-income communities. Not only will these extensions be a much needed boost to AAPI working families, they will also serve to facilitate economic growth. Some of the provisions include: Extending the Earned Income Tax Credit (EITC) Extending elements of the Child Tax Credit (CTC)
The rates of poverty are disproportionately higher in many AAPI sub-ethnicities. For example, two-thirds of Laotian and Hmong Americans; one-third of Vietnamese Americans; and almost half of Cambodian Americans live in poverty. Among Pacific Islanders, 20 percent of Tongan families live below the poverty level. AAPI communities most in need will certainly benefit from extending the EITC and CTC. Extending unemployment benefits for an additional 13 months
A recent study also found that AAPI workers spend a longer time unemployed than other minorities due to language and cultural barriers. Many AAPIs have limited access to unemployment and job training services. (Source: Economic Policy Institute (EPI) via NPR:
The tax agreement also builds upon the Recovery Act by: Extending American Opportunity Tax Credit (AOTC) which gives working families and students a $2,500 per year tax credit to help cover tuition costs
Congressional research has shown that in 2007, 37 percent of Asian Americans and 36.2 percent of Pacific Islanders access student loans.
For more information on the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 click here.
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