2023 Legislative Proposal
Connecticut Governor Ned Lamont’s recent legislative proposal to provide tax relief for low-income workers in Connecticut has the potential to uplift thousands of individuals and families. The proposal, which involves increasing Connecticut’s Earned Income Tax Credit (EITC) from 30.5% to 40%, will provide an additional $44.6 million in state tax credits to over 211,000 qualifying low-income households.
The EITC is a refundable state income tax that mirrors the federal EITC, designed for low-income working individuals and families. According to Fox61, the rate will be increased to 40% and it will make Connecticut one of the top five states in the nation with the largest EITC rates. This move is expected to boost economic stability and uplift generations to come. Families with children usually receive more than 95% of all EITC dollars, making this proposal particularly beneficial for families with low incomes.
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Tax Relief Measures
According to Connecticut’s Official State Website, Governor Lamont’s plan also includes several other tax relief measures, including a plan to restore the pass-through entity tax credit to its original level, which enables small business owners to save money by claiming a larger credit on their returns. The governor will also announce additional tax relief measures targeted toward middle-class workers in the coming days.
This legislative proposal is a much-needed move toward economic empowerment for all. The EITC encourages work and uplifts low-income workers, and Governor Lamont believes it is about time to increase it. This increase could help improve entire communities because these bills are being financed right back into the local economy through groceries, transportation, clothing, rent, utilities, and other necessary expenses.
Governor Lamont’s legislative proposal to boost low-income workers with tax relief is crucial to creating economic stability and empowerment for thousands of families in Connecticut. With additional tax relief measures in the works, Governor Lamont’s upcoming budget proposal promises to be a positive move for the state’s economic development.
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