Could a little improvement in a federal taxation credit dramatically reduce people’s importance of 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 concept would be to massively expand the Earned Income Tax Credit (EITC), which provides low- and moderate-income Americans a subsidy for working. Many attention will focus on the price of the legislation, that could run near $1 trillion over ten years, although an estimate that is exactn’t available. But hidden inside the bill is really a little modification that might have big ramifications when it comes to cash advance industry, which covers short-term monetary requirements by charging you quite high interest levels.

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