An Act Eliminating The Earned Income Tax Credit.
Should SB00053 be enacted, it would have significant implications for state tax policy, particularly impacting lower-income families who rely on the tax credit as part of their annual income. The repeal of the EITC may lead to increased financial strain for these families, potentially resulting in higher poverty rates and diminished spending power within the state. The proposed legislation could also affect the state's overall economy, as lower-income households typically spend a larger portion of their income on necessary goods and services.
SB00053 aims to eliminate the Earned Income Tax Credit (EITC) in the state, a tax benefit designed to assist low-income earners by reducing their tax burden. The bill proposes the repeal of section 12-704e of the general statutes, thus removing a financial safety net that supports working families by providing them with a tax refund incentivizing work. Supporters of the EITC argue that it plays a crucial role in lifting individuals out of poverty and promoting economic mobility among lower-income residents.
The discussions surrounding SB00053 include notable points of contention, particularly regarding the socio-economic effects of eliminating the EITC. Opponents of the bill express concerns that repealing the credit will disproportionately harm vulnerable populations, exacerbating income inequality and poverty. On the other hand, proponents may argue for the need to streamline tax policies or reallocate funding towards other initiatives, although specific alternative proposals or justifications have not been highlighted within the discussions available.