In 2011, Governor Malloy signed the state’s Earned Income Tax Credit into law. Connecticut’s working families can now claim 30% of the federal EITC in a refundable tax credit. However, this year, Governor Malloy has proposed a cut, reducing the CT EITC to 27%. This cut would be detrimental to Connecticut’s families who have to choose between paying rent or buying food.
The Earned Income Tax Credit (EITC) is a refundable tax credit that supplements the wages of low-income workers. The more wages people earn, the more benefits their families receive until a certain point when the benefits begin to decline and finally disappear.
Data provided by the Department of Revenue Services (DRS) shows that the credit is a boost to working families- including hundreds of thousands of children- in every city and town in Connecticut.
Any cut to Connecticut’s EITC is a tax increase on working families. Cutting the EITC will push still more children into poverty and hurt the state’s economy by taking money out of local communities and businesses.
“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.” says Jim Horan, executive director at CAHS.