© 2025 Connecticut Public

FCC Public Inspection Files:
WEDH · WEDN · WEDW · WEDY
WEDW-FM · WNPR · WPKT · WRLI-FM
Public Files Contact · ATSC 3.0 FAQ
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Earned Income Tax Credit Faces A Cut In Connecticut Budget Proposals

creative commons

Advocates for the state's low income families say budget proposals to cut the earned income tax credit, or EITC, will have a negative effect on the economy and make the tax code less fair. 

Connecticut has had an EITC since 2011. The theory behind it is this: low-income families who work pay a much higher percentage of their income in things like social security, Medicare, sales, and property taxes than high-income earners.

This can sometimes mean that taking a job instead of relying on state assistance actually lowers your income.

The state program, combined with a similar federal credit, is designed to offset this effect, and make working -- even at a low wage job -- financially more attractive. It's fully refundable, so even if you owe no income tax, you can still claim the full amount.

"It’s one of the most effective anti-poverty policies in the U.S.,” said Derek Thomas of Connecticut Voices for Children.

He said 200,000 families in Connecticut receive the EITC. Typically the recipient will be a person earning about $18,500 dollars a year. They’ll be eligible to get a credit of $565 from the state, and even more under the federal EITC.

In the time since it was enacted, the EITC has boosted nearly 7,000 people above the poverty line.

But all three budget proposals currently on the table -- from the governor, as well as Democratic and Republican legislators -- would cut back the credit. The Republicans’ proposal makes it non-refundable, meaning if you owe no income tax, you don’t get it. That effectively would all but end the program.

"Now is absolutely the wrong time to be cutting the earned income tax credit. It's all the more important at a time when child poverty remains high and low wage work is more prevalent," Thomas told WNPR.

In fact, the share of jobs available in low wage industries in Connecticut has risen by 20 percent in the last 15 years in Connecticut, while the share of high wage jobs has fallen by 13 percent. Thomas said while his organization understands that the state faces a big financial crisis, what he doesn't get is how the governor can, in the same document, propose easing the estate tax.

"Simply put, it's a tax break worth an average of $100,000 for some 600 families, at the same time as they're cutting the earned income tax credit -- so that doesn’t look like shared sacrifice to us,” he said.

One effect of cutting back the EITC is that there's less disposable income available for urban communities. It’s estimated that the credit pumps $10 million into Hartford's economy alone.

Harriet Jones is Managing Editor for Connecticut Public Radio, overseeing the coverage of daily stories from our busy newsroom.

The independent journalism and non-commercial programming you rely on every day is in danger.

If you’re reading this, you believe in trusted journalism and in learning without paywalls. You value access to educational content kids love and enriching cultural programming.

Now all of that is at risk.

Federal funding for public media is under threat and if it goes, the impact to our communities will be devastating.

Together, we can defend it. It’s time to protect what matters.

Your voice has protected public media before. Now, it’s needed again. Learn how you can protect the news and programming you depend on.

SOMOS CONNECTICUT is an initiative from Connecticut Public, the state’s local NPR and PBS station, to elevate Latino stories and expand programming that uplifts and informs our Latino communities. Visit CTPublic.org/latino for more stories and resources. For updates, sign up for the SOMOS CONNECTICUT newsletter at ctpublic.org/newsletters.

SOMOS CONNECTICUT es una iniciativa de Connecticut Public, la emisora local de NPR y PBS del estado, que busca elevar nuestras historias latinas y expandir programación que alza y informa nuestras comunidades latinas locales. Visita CTPublic.org/latino para más reportajes y recursos. Para noticias, suscríbase a nuestro boletín informativo en ctpublic.org/newsletters.

The independent journalism and non-commercial programming you rely on every day is in danger.

If you’re reading this, you believe in trusted journalism and in learning without paywalls. You value access to educational content kids love and enriching cultural programming.

Now all of that is at risk.

Federal funding for public media is under threat and if it goes, the impact to our communities will be devastating.

Together, we can defend it. It’s time to protect what matters.

Your voice has protected public media before. Now, it’s needed again. Learn how you can protect the news and programming you depend on.