Connecticut House Bill HB05195

Connecticut 2019 Regular Session

• Introduced: 1/11/19
• Refer: 1/11/19

Caption

An Act Requiring A Study Of The Earned Income Tax Credit.

Impact

The findings from this study are expected to inform potential modifications to the current framework governing the EITC. By considering recommendations such as a graduated schedule that permits credit recipients to retain eligibility even with modest pay increases, the bill is poised to improve financial security for low-income workers. Additionally, it proposes to shift the distribution of tax refunds from a lump sum to monthly payments, thereby ensuring more consistent income streams for recipients. This change could significantly enhance the economic wellbeing of those reliant on the EITC.

Summary

House Bill 05195, introduced by Representative Rutigliano, aims to address the earned income tax credit (EITC) by requiring a study from the Commissioner of Revenue Services. This study is intended to evaluate the income eligibility requirements for the EITC and how these requirements may adversely affect recipients. Specifically, the bill seeks to explore the impact of these requirements on the likelihood of premature job termination among individuals who wish to maintain their credit eligibility while pursuing increased earnings.

Contention

While the bill appears beneficial to recipients of the earned income tax credit, it may prompt discussions regarding the state's tax policy adjustments. Supporters might argue that altering eligibility criteria and payment structures will alleviate financial hardships, thereby incentivizing employment among low-income individuals. However, some may raise concerns about the administrative feasibility of implementing monthly distributions and whether the proposed changes would effectively address the underlying issues surrounding employment instability.