SF Examiner: California’s best antipoverty tool only works if people know about it

That is exactly why California should make a modest but powerful investment in one of the state’s most effective anti-poverty tools: refundable tax credits. Research consistently shows that every dollar distributed through the Earned Income Tax Credit generates approximately $1.75 in local economic activity. In California, that means these credits support roughly $2.45 billion in economic activity statewide. That spending also generates millions in sales-tax revenue that flows back to state and local governments.