To help reduce poverty, many states have modeled their own versions of tax relief for lower and middle-income workers on an enhanced federal earned income tax credit that expired last year. Rising inflation, pandemic hardships, and increasing economic disparities have intensified calls to create or expand these credits along with child tax credits in both Democratic and Republican-led states.
To date, 11 states have enacted their own child tax credits and more than 30 now have an earned income tax credit, according to a report by the nonpartisan Center on Budget and Policy Priorities.
On this episode of Talking Tax, Bloomberg Tax reporter Donna Borak speaks with Connecticut's new state comptroller Sean Scanlon, who says there's no one "silver bullet solution" to tax policy. The former state legislator discusses his involvement in creating the state's first child tax credit and the Biden administration's latest attempt to reinstate a federal enhanced child tax credit. Scanlon also speaks on why he thinks historic surpluses make it possible for Connecticut lawmakers to create both a permanent child tax credit (SB 771) and pursue Gov. Ned Lamont's (D) plans to cut income taxes and raise the earned income tax credit.
Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.