Connecticut Senate Bill SB00705

Connecticut 2023 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

An Act Eliminating The Earned Income Tax Credit.

Impact

The elimination of the EITC would have a considerable effect on state tax laws, particularly for low-income earners. Supporters of the bill might argue that such measures are necessary for fiscal responsibility; however, detractors warn that removing the EITC could exacerbate economic hardships for many households. Tax credits like the EITC are essential for providing financial relief and incentivizing work among low-income individuals, and their removal could lead to an increase in poverty rates—especially among families with children.

Summary

SB00705, titled 'An Act Eliminating The Earned Income Tax Credit,' proposes the repeal of section 12-704e of the general statutes, effectively eliminating the earned income tax credit (EITC) in the state. This significant change in tax policy is aimed at altering the support structure for low-income working families who rely on this credit to offset their tax liabilities and improve their economic stability. The bill has drawn attention for its potential impact on financial equity and poverty alleviation efforts.

Contention

This proposal has sparked controversy among lawmakers and community advocacy groups. While proponents may argue that it simplifies tax policy and reduces government expenditures, opponents are concerned about the long-term social implications of removing a crucial support mechanism for working families. The debate emphasizes the broader discussion regarding the role of government in providing financial assistance and support to its citizens, particularly those who are economically disadvantaged.