HOUSTON, February 13, 2007 - A $2.10 increase in the minimum wage to $7.25, as passed by the U.S. Senate, could result in less money for the working poor unless Congress also adjusts the income levels that qualify for the earned income tax credit, according to Ken Decker, Skills For Living, Inc., who, with his wife Lorraine, presented a free financial literacy seminar to the Houston CPA Society on Saturday, Feb. 10.

Decker, also a Certified Public Accountant and member of the Society's Financial Literacy Committee, calculated that a family with two children, taking the maximum earned income tax credit, actually sees a benefit equal to $2.18/hour under the current wage and tax laws. A family with one child who takes the maximum credit receives about a $1.32/hour raise while the family with no children, but meeting the income guidelines, would get a $412 credit which is worth a 20 cent per hour raise.

"Without raising the income guidelines to qualify for the earned income tax credits, some families receiving the minimum wage will actually take home less even if the minimum wage goes up," Decker said.

In addition, employers who pay these workers in cash, "so that they don't need to file taxes," are depriving these workers of the additional money as well as their share of Social Security, he explained. Of course, these employers are also bypassing the laws that require them to pay the employers' share of Social Security, unemployment and possibly federal income taxes.

At times, getting married may cost a taxpayer the use of the earned income tax credit, Decker said, noting that other problems may be found in the system. "The financial literacy workshop was designed to provide CPAs and others with the financial education and knowledge they need to relate to the 'working poor' and be an effective mentor," explained Brenda F. Banks of Humble-Kingwood, Merrill Lynch (Cy-Fair), chairwoman of the Society's Financial Literacy Committee.

Members of the Society often work in the free taxpayer assistance program sponsored by Houston Asset Building Coalition. In particular, the Society staffs a site at the University of Houston Bayou City Room 202, 4800 Calhoun, that will operate on Feb. 17, Feb. 24, March 17, March 24, March 31 and April 14. Other sites may be accessed at www.houstonassetbuilding.org or by calling 2-1-1.

Kenneth and Lorraine Decker founded Skills for Living, a nonprofit organization that works with Habitat for Humanity families to help them set financial goals that will increase their net worth and enable them to pay off their mortgages and send their children to college. For more information, log on to www.skills4living.org . They have spoken frequently about retirement, estate and financial planning issues. The team also owns Decker & Associates, a financial planning firm in the Galleria area.

About the Houston CPA Society

The Houston CPA Society is the largest chapter of the Texas Society of CPAs and the third largest CPA Chapter in the United States with more than 7,700 CPA members in Houston and 13 surrounding counties. In addition to providing continuing professional education to its members, the 76-year-old Houston CPA Society has donated millions of dollars to charities through its charity events and golf tournaments. The Society delivers toys and books to 6,600 children each year through Santa CPAs and supports education with scholarships for students, grants for schools and a variety of recognition programs and contests. Each spring, the Houston CPAs provide free tax help to disadvantaged citizens, including those with low income, physical impairments, non-English-speaking ability or elderly status. They provide ongoing help to other nonprofit organizations by lending skills to charity auctions, tallying results for KUHT-TV public television drives and providing accounting advice to other nonprofit organizations. For more information about the Houston CPA Society, log on to the web site at www.houstoncpa.org.