The 2011 tax season was the first in which working families could claim Connecticut’s new Earned Income Tax Credits (EITC). long viewed as one of the most effective single method of helping families rise out of poverty.
The Center for Budget and Policy Priorities (CBPP) shares new research showing that EITC boosts school performance for children, makes it more likely they will attend college, and improves their future earnings – so much so that the benefits of the EITC more than offset its cost.
“We previously showed that the Earned Income Tax Credit (EITC) for low-income workers lifts more children out of poverty than any other public program,” CBPP reports. “More recent research suggests that the income assistance it provides is even better for children — our nation’s future workforce — than we thought, helping them succeed both as students and, in adulthood, as workers.”
The EITC is also an economic stimulus, going to families who spend their refund in their communities. Results of Connecticut usage statewide will be available soon. CAHS’ 45 Volunteer Income Tax Preparation sites returned $6.94 million in state and federal EITC to Connecticut!
After years of hard work by CAHS and many, many others, and the strong support of Governor Dannel Malloy, our EITC, at 30% of the federal credit, was signed into law last summer.