News Round Up: April 3, 2023

Top Story: Connecticut is considering a proposal to increase the state Earned Income Tax Credit (EITC) from 30.5% to 40% of the federal rate. If implemented, this proposal would provide over 200,000 eligible households with $45 million in tax credits. (The Chronicle)

  • The Massachusetts House of Representatives plans to unveil a tax relief package designed to make the state more affordable for residents and more competitive with other states, says Speaker Ron Mariano (D). Proposed tax cuts include an expanded Child and Dependent Care Tax Credit (CDCTC) and expanded EITC, both of which were abandoned in previous legislative sessions. (WGBH)
  • A Massachusetts-based coalition is urging the state to expand the EITC from 30% to 50% of the federal rate. Additionally, the coalition is advocating for Gov. Maura Healey’s (D) plan to combine two existing tax credits into a single child and family tax credit, which would be worth at least $600 per dependent. (MassLive)
  • New York City Mayor Eric Adams (D), along with labor leaders and state lawmakers, expressed their support for the inclusion of an expanded state EITC and state CTC in the final Albany spending bill. (amNY)
  • The Vermont Senate recently preliminary approval for Senate Bill 56, which seeks to repeal the state CTC in order to fund childcare programs and early childhood education. (Seven Days)
  • The Tax Policy Center discusses the benefits and changes to be aware of with President Joe Biden’s recent CTC proposal, which would revive the federal credit’s 2021 expansion. (Tax Policy Center)