News Round Up: May 9, 2022

Top Story: The Missouri legislature recently passed the largest budget in the state’s history. The $49 billion will go towards multiple projects and causes including a proposed one-time Earned Income Tax Credit (EITC) for Missourians who paid income taxes this past tax year. The proposal is set to go to Gov. Mike Parson’s desk for approval. (KCUR)

  • Connecticut lawmakers sent a revised $24.2 billion state budget to Gov. Ned Lamont’s desk where it now awaits approval. The plan includes roughly $600 million in tax cuts, including a discussed one-year $250 Child Tax Credit (CTC) and expanded state EITC. The CTC is expected to benefit at least 600,000 children. (NBC Connecticut; The Sun)
  • In a recent study published by Health Affairs, researchers found that the percentage of American households struggling with food insecurity decreased from 12.7% to 5.6% due to the 2021 federal CTC expansion. Researchers also found a link between the expanded tax credit and lower consumption of sugar-added food and beverages among children. (Health Affairs)
  • A recent study conducted by The Washington Post discovered that not renewing the CTC expansion would be the most detrimental for single mothers in comparison to single fathers and married couples. (Washington Post)
  • A report from the Community Service Society showcased the history of the EITC and where it has room for improvement on both the state and local levels. (Community Service Society)
  • A new method may give the IRS the ability to automate tax returns. If functional, auto-filled returns would help ease the stress and confusion of tax filing and support non-filers, including those eligible for EITC and CTC. (CNBC)