News Round Up: May 2, 2022
Top Story: With $400 million in budget surplus, Democrats in the Connecticut legislature are looking to create a state-level Child Tax Credit (CTC) for the first time in the state’s history. If added, the tax credit would start in FY2023 which begins in July. The proposed budget would also expand the state’s Earned Income Tax Credit (EITC) to 41.5% of the federal credit. (Hartford Courant)
- The Vermont Senate recently approved legislation to enact a state CTC worth up to $1,000 per year. There is still a chance of a veto from Gov. Phil Scott who states the proposal does not go far enough to aid all residents. (WCAX)
- A Hawaii legislative conference committee agreed on the amendments made to a bill that would raise the state minimum wage over the next 6 years and make the state EITC refundable and permanent. The proposal now goes to the full Senate and House for a final vote before reaching Gov. David Ige’s desk. (KITV)
- A recent analysis by the Tax Policy Center presents five options for lawmakers to potentially restore the 2021 expansion of the CTC, which lifted more than 3 million children out of poverty. (Forbes)
- New York Kathy Hochul announced regional investments for Western New York families in the FY2023 state budget. Among the actions is a one-time supplemental payment equal to 25% of the EITC or Noncustodial Parent EITC that was claimed by households in the tax year 2021. This is projected to provide over 68,000 Western NY families with an average payment of $198. (New York State Governor)
- An essay collection by the Brookings Institution titled “Recession Remedies” pointed to the 2021 expansion of the CTC as playing a pivotal role in lowering child poverty rates. (Brookings Institution)