Push for a New Income Tax Credit
Child Tax Benefit: A Legislative Support
One of the prominent issues at the Connecticut state Capitol currently is the debate over whether to introduce a new income tax credit for low and middle-income households with children. Over two dozen legislators have co-sponsored bills advocating for a per-child credit, and the Finance, Revenue, and Bonding Committee recently spent eight hours hearing testimony from various individuals and groups supporting the relief.
Legislative leaders, including as House Speaker Matt Ritter, are wary of the likelihood that a sizable new credit will be included in the state budget that will be voted on in late April or early May. Ritter pointed out how hard it is to pull off something as big as the $250 income tax refund per child that was authorized two years ago. Even though the state’s finances have a healthy surplus of over $650 million this year, many lawmakers are giving the stability of the current tax relief programs priority before taking into account new ones.
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The Progressive Conference of Connecticut For All: Advocacy in the Face of Adversity
The timing poses a challenge as well, with the current legislative session being two months shorter, running from early February to early May. Senate President Martin M. Looney has proposed a $50 per-child credit that would gradually increase to $600 over four years. Republicans, on the other hand, suggest a more modest $2,000-per-child income tax deduction, favoring a different approach that doesn’t involve raising tax rates on any specific groups or businesses.
Even if there are a number of options available, reaching a consensus is still difficult. Even if a bill to phase in a $600 credit over four years is enacted, lawmakers have the authority to change the plan if unanticipated issues come up. Despite the obstacles, the progressive coalition Connecticut For All, which consists of more than 60 organizations, highlights the need for greater tax equity and indicates that it will continue to advocate for a permanent child tax credit. It claims that the working class’s finances are stretched and that more can be done to alleviate their situation.