Connecticut House Bill HB05183

Connecticut 2014 Regular Session

• Introduced: 2/18/14
• Refer: 2/18/14

Caption

An Act Repealing The Earned Income Tax Credit.

Impact

The repeal of the EITC would impact thousands of low-income households who rely on this tax credit to ameliorate their financial burden. By eliminating this credit, the state would be effectively increasing the tax liabilities of these households, which may exacerbate economic inequality. Supporters of the repeal argue that it will help balance the state budget, emphasizing the need for fiscal stability over specific welfare programs. However, opponents contend that removing such vital support undermines the economic stability of those who are already struggling and could lead to greater dependency on other public assistance programs.

Summary

House Bill 05183 proposes the repeal of the Earned Income Tax Credit (EITC) as outlined in chapter 229 of the general statutes. The EITC is designed to provide financial assistance to low-income working individuals and families by reducing their tax liability. The repeal of this credit is intended to provide budget relief to the state, potentially reallocating resources towards other fiscal needs. The introduction of this bill reflects ongoing discussions about the management of state finances and the support mechanisms available to economically disadvantaged citizens.

Contention

The contention surrounding HB 05183 centers on the balance between fiscal responsibility and social support. Advocates for the repeal emphasize the necessity for the state to manage its budget effectively, particularly in times of economic downturn. In contrast, critics highlight the potential negative consequences for low-income families and argue that the EITC plays a crucial role in encouraging employment and providing necessary financial support. This debate reflects broader discussions on how tax policy can be structured to both support vulnerable populations and ensure sustainable state finances.