The Earned Income Tax Credit: Still Lagging Behind In Connecticut

The federal earned income tax credit (EITC) contributed $217 million in 2001 to the Connecticut economy, providing an effective economic stimulus while helping thousands of low-wage families move towards economic self-sufficiency. Families in each and every Connecticut town benefited from the EITC. This report recommends that Connecticut build on the success of the federal tax credit by creating a state-level counterpart, which could provide an estimated $43 million more to Connecticut’s low-wage families, helping them to better meet their children’s needs.