An Act Establishing A State Child Tax Credit.
If enacted, HB 5276 would amend Chapter 229 of the general statutes concerning personal income tax. This amendment would lead to a direct fiscal impact on state revenues, as the implementation of the child tax credit would reduce the amount of tax collected from qualifying taxpayers. Supporters argue that this bill would enhance the financial well-being of families, potentially leading to increased consumer spending and economic growth. Additionally, they assert that by making the child tax credit refundable, families who may not pay enough taxes to benefit from a non-refundable credit will still receive financial support.
House Bill 5276, introduced by Representative Doucette, proposes the establishment of a state child tax credit in Connecticut. This credit aims to provide financial assistance to families by offering a refundable tax credit equivalent to thirty percent of the federal child tax credit. It is targeted at individual taxpayers with an adjusted gross income of less than $200,000 and joint filers with an income of less than $400,000. The introduction of this bill reflects a growing recognition of the economic challenges faced by families in the state and aims to alleviate some of the financial burdens associated with raising children.
There may be differing opinions regarding the implementation of HB 5276, particularly concerning its fiscal implications. Critics could argue that introducing a new refundable credit could strain state revenues, especially amid budgetary constraints. Furthermore, there may be debates surrounding the qualification thresholds, with some advocates pushing for higher income limits to encompass more families, while others may argue that such measures could unfairly burden taxpayers who do not qualify. Overall, the bill's provisions could spark discussions on the balance between supporting families and ensuring sustainable fiscal policy.