H.R.2972 - EITC for Older Workers Act of 2025 (119th Congress)
Summary
H.R.2972, the EITC for Older Workers Act of 2025, proposes to amend the Internal Revenue Code of 1986 by removing the upper age limit for eligibility for the Earned Income Tax Credit (EITC). Currently, individuals age 65 and over are ineligible for the EITC. The bill aims to repeal this age restriction, potentially benefiting older workers with low to moderate incomes.
The bill was introduced in the House of Representatives on April 21, 2025, and referred to the Committee on Ways and Means. The proposed change would take effect for taxable years beginning after December 31, 2025.
This change would allow older workers to claim the EITC, providing them with additional financial support.
Expected Effects
The primary effect of this bill would be to expand EITC eligibility to older workers who were previously excluded due to their age. This could lead to increased financial stability for eligible older adults.
It may also incentivize older individuals to remain in the workforce, contributing to the economy. The change would require adjustments to tax forms and IRS guidelines to accommodate the new eligibility criteria.
Potential Benefits
- Increased Financial Support for Older Workers: Provides additional income to low-to-moderate income older workers.
- Incentive to Work: May encourage older individuals to remain in or re-enter the workforce.
- Poverty Reduction: Could help reduce poverty rates among older adults.
- Economic Stimulus: Increased spending by older workers could stimulate local economies.
- Fairness: Addresses age-based discrimination in tax benefits.
Potential Disadvantages
- Increased Government Spending: Expanding EITC eligibility will likely increase government expenditures.
- Potential for Fraud: Expanded eligibility could create more opportunities for fraudulent claims.
- Complexity: May add complexity to the tax system, requiring additional guidance and resources for taxpayers and the IRS.
- Administrative Burden: The IRS will need to update its systems and processes to accommodate the change.
- Unintended Consequences: Could disincentivize retirement savings if EITC benefits are perceived as a substitute.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the constitutional principle of promoting the general welfare, as it seeks to provide financial assistance to a vulnerable segment of the population. While the Constitution does not explicitly address tax credits or age-based eligibility, Congress has broad authority to legislate on matters related to taxation and spending under Article I, Section 8, Clause 1 (the Taxing and Spending Clause).
The bill does not appear to infringe upon any specific constitutional rights or protections. It is a matter of economic policy within the purview of Congress.
However, the equal protection clause of the Fourteenth Amendment could be invoked if the age restriction were deemed arbitrary or discriminatory, but removing the restriction mitigates this concern.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).