Stagnant Tax Threshold Hurts Connecticut Families

The number of low-income Connecticut families required to pay state income taxes will continue to grow each year, unless the state increases the “tax threshold,” the income level at which families begin paying taxes, taking into account all universally-available exemptions and credits. Of the 42 states, including the District of Columbia, that levy a state income tax, Connecticut is one of just two states that has not adjusted its tax threshold upward since 1991. As a result, more low-income families have been paying the tax, and without legislative action, Connecticut will be taxing families at the poverty level within a few years. An issue brief from CT Voices and a national report from the Center on Budget and Policy Priorities are below.