About 181,000 Connecticut residents benefitted from the state’s new earned income tax credit, one of the key measures enacted by Gov. Dannel P. Malloy to help low income residents, a new report says.
Connecticut Voices for Children, a liberal policy think tank, issued its report Thursday that claims the state spent $109.2 million in the first full year of the earned income tax credit’s existence.
That credit, which provides tax breaks to low income individuals and families, was adopted in 2011 by lawmakers after Malloy made it a key part of this inaugural two-year budget plan.
More than 180,000 working families in Connecticut received the state earned-income tax credit in 2012, the first full year the credit was in existence, the report said. On average, these households had gross incomes of about $18,000 – what a single parent working full-time just above minimum wage would have earned before taxes, the report said.
The average state credit among these households was about $600, on top of a federal credit of about $2,000, the report said.
