What are the tax incentives for workers

Government can offer tax incentives to encourage people to stay on the job, even if their pay is modest. Earlier this year, Newsom increased funding for the state’s Earned Income Tax Credit to put money directly into working people’s pockets, expanding the program from $400 million to $1 billion per year.

The EITC now provides a $1,000 refund to working-poor families with children under 6 and expands income eligibility from $24,950 to $30,000, so people earning minimum wage won’t lose out on the credit when hourly pay rises to $15 in a few years.