The Earned Income Tax Credit: What It Does For Connecticut, And How It Could Do Much More

The federal Earned Income Tax Credit (EITC) lifts more children out of poverty than any other federal program, and benefits 168,000 families in Connecticut. In 2003, about $263 million in federal EITC refunds came to Connecticut’s low-wage families. Research shows that these funds are quickly spent — paying overdue bills, repairing cars, paying for the deposit on a larger apartment and the like — meaning that these funds moved quickly into Connecticut’s economy, helping its recovery. A state EITC in Connecticut would help low-income families achieve self-sufficiency, address the growing disparity between high and low wage earners, and make our tax system more fair.