Connecticut House Bill HB05701

Connecticut 2011 Regular Session

• Introduced: 1/21/11
• Refer: 1/21/11

Caption

An Act Establishing A State-earned Income Tax Credit.

Impact

If enacted, HB 05701 will amend chapter 229 of the general statutes, thereby establishing the framework for this state tax credit. This credit aims to ease the tax burden on eligible taxpayers by recognizing their earned income and providing a corresponding tax deduction. This could lead to increased disposable income for numerous families, potentially stimulating local economies and inducing further economic growth as households may spend this additional income on necessary goods and services.

Summary

House Bill 05701 proposes the establishment of a state-earned income tax credit that would amount to twenty percent of the federal-earned income tax credit. This legislation is intended to provide additional financial relief to low-income working individuals and families by supplementing the support they receive through the federal tax system. The proponents of this bill argue that such a measure is crucial for enhancing the financial stability of working-class families and encouraging employment in the state.

Contention

While the bill is supported by those advocating for low-income relief, it may face opposition centered around fiscal concerns. Critics could argue that this tax credit will result in a decrease in state revenue, possibly necessitating cuts to essential services and programs. Additionally, opponents may question the effectiveness of tax credits in providing long-term financial stability and whether the state can afford the fiscal implications of implementing such a credit.