An Act Concerning The Repeal Of The Earned Income Tax Credit.
Impact
If enacted, the removal of the EITC could affect many low-income working families who rely on this credit to supplement their incomes. The EITC not only aids in offsetting the costs associated with raising children and maintaining a household but also serves as an incentive for employment. By eliminating this credit, the bill could inadvertently lead to increased economic strain on these families, potentially resulting in a higher demand for state assistance programs to fill the gap left by the tax credit's removal.
Summary
House Bill 5028 proposes the repeal of the Earned Income Tax Credit (EITC) as outlined in chapter 229 of the general statutes. The primary intention behind this bill is to provide budgetary relief by eliminating this tax credit, which is traditionally aimed at supporting low-income families and individuals by reducing their tax burden. The repeal of the EITC is expected to have significant implications on the financial well-being of those who currently benefit from it, as it would remove a crucial source of assistance that helps them manage their living expenses.
Contention
There are notable points of contention regarding HB 5028. Proponents of the repeal argue that eliminating the EITC could help the state manage its budget more effectively by reducing tax expenditures. However, critics contend that this move disproportionately affects the most vulnerable segments of society. They believe that the loss of the credit will exacerbate financial difficulties for low-income households, push individuals further into poverty, and lead to broader economic challenges as disposable income is decreased in these communities.