Two Democrats challenge the payday-loan industry

Could a small change in a federal tax credit significantly reduce people’s need for predatory payday loans?

That’s the hope of a new tax bill introduced Wednesday by Sen. Sherrod Brown and Rep. Ro Khanna. Their topline idea is to massively expand the Earned Income Tax Credit (EITC), which gives low- and moderate-income Americans a subsidy for working. Most attention will focus on the cost of the legislation, which could run near $1 trillion over 10 years, although an exact estimate isn’t available. But buried within the bill is a small change that could have big ramifications for the payday loan industry, which covers short-term financial needs by charging very high interest rates.

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http://www.politico.com/agenda/story/2017/09/13/two-democrats-challenge-the-payday-loan-industry-000521

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