Smart policy that supports children is not just about spending, it is also about revenue and taxation. For a healthy economy tomorrow, we need to ensure that our state tax and spending policies promote healthy children and thriving families. Connecticut took a big step in this direction with the enactment of the earned income tax credit which benefited more than 186,000 households in 2012, but there is more work to do. This report from the Fiscal Policy Center at Connecticut Voices for Children compares Connecticut’s tax system to those of other states and finds:
- Connecticut is nearly alone among states in not making broad-based tax adjustments for families with dependent children.
- More than half of states with an income tax (24 of 41 states) offset the cost of raising children through a refundable state child tax credit, childcare tax credit, or both. Connecticut has neither.
To support families through the tax system and bring Connecticut in line with other states, Connecticut Voices recommends that state policymakers adopt family-friendly tax measures commonly used in other states, such as a child tax credit and a child and dependent care tax credit.