The earned income tax credit, or EITC, is one of the best domestic policy tools ever invented. Since it can only be claimed by people who work and pay taxes, it encourages and rewards work. It keeps low-income wage earners out of poverty. The money saved goes right back into the local economy.
It would be a shame to cut it, even temporarily.
The state EITC was created two years ago and is worth 30 percent of a filer's federal EITC. In 2012, more than 180,000 families in Connecticut received the credit. People in every town claimed it (1,218 in
In one of many proposals to balance the budget, Gov.
Recipients almost invariably need the money for basics such as food, clothing, shelter or health care. Taking the credit away raises their taxes, in effect, causing them to pay a much higher share of their income on taxes than people making over $1 million a year, according to a recent study.