CAHS Executive Director Jim Horan has an excellent op-ed in today's Hartford Courant about the effective and necessary Connecticut Earned Income Tax Credit:
"By helping families make ends meet, the EITC helps build our economy now and in the future. Today, local businesses benefit because their employees spend the credit on things such as child care and car repairs that make them more reliable and productive employees. Tomorrow, we will also have a more skilled workforce because not only does the EITC provide struggling families with the support they need now, it also has proven long-term benefits for children that make them more productive adults. "
Jim recounts a recent study by CT Voices for Children and CAHS showing that the CT EITC helped families in every CT city and town, and touches on the numerous national studies showing the EITC's effectiveness in reducing poverty and future costs.
"Young children whose families receive additional income from programs like the EITC are healthier, perform better and advance further in school, and then work more and earn more as adults....The EITC is mostly used as a temporary support. Three out of five recipients claim the EITC for short periods — only one or two years. "
Governor Malloy showed great leadership in supporting the state EITC, which now stands at 30% of the federal credit. Reducing the EITC amounts to a tax increase in the working poor who can least afford it- and who already pay a higher portion of their income in taxes than more wealthy people.
"People who work full time should be able to support their families and stay out of poverty. The state's EITC helps them do just that. It's a small investment that makes a big difference to hard-working families across every town in Connecticut."