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Bill

SB 322

AN ACT ELIMINATING THE EARNED INCOME TAX CREDIT.

2025 Regular Session Introduced by Anne Dauphinais and 2 co-sponsors

Connecticut bill would eliminate state earned income tax credit, raising taxes on low-to-moderate income working families earning roughly $15,000-$60,000 annually.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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Bill Summary · SB 322

Legislative bill overview

SB 322 proposes to eliminate Connecticut's Earned Income Tax Credit (EITC), a state tax benefit that currently reduces tax liability for low-to-moderate income working individuals and families. The bill would repeal the existing statute that authorizes this credit, effectively removing this tax benefit from the state tax code.

Why is this important

The EITC is a significant anti-poverty tool that supplements wages for working people earning between roughly $15,000-$60,000 annually. Eliminating it would increase tax burdens on low-income workers and reduce state revenue support for working families, potentially affecting thousands of Connecticut residents and increasing reliance on other social services.

Potential points of contention

  • Impact on working families: Removal would directly increase taxes on low-income workers, potentially pushing some families below poverty thresholds and reducing disposable income for essential expenses
  • Fiscal reasoning unclear: The bill provides no stated rationale for elimination—whether motivated by budget concerns, ideology, or other factors remains unstated, making it difficult to assess alternative solutions
  • Economic effects: Loss of EITC could reduce consumer spending in local economies, potentially offsetting any tax revenue gained, and may increase demand for emergency assistance programs

Compiled from official sources — confirm details with the bill’s official record.

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