Popular Tax Credits on the Budget Chopping Block?

As the Malloy administration begins to flesh out the details of a deficit mitigation plan with legislative leaders, the question of whether two tax credit programs popular with middle- and low-income people will fall victim to filling the budget hole this year and next. The earned income tax credit (EITC) which benefits the working poor, and the property tax credit enjoyed by middle income taxpayers, will get a hard look. The governor wants to cut another $242 million after already using his authority to cut $123 million. Just how much the state is in the red seems to be a moving target. See the details here.

EITC is the more likely to be cut. The program has been in effect for only two years. It puts money in the pocket of those at the bottom on the income scale. Supporters say it can help those folks catch up with rent, make clothing purchases for kids, pay for car repairs and many other expenses. It also helps the economy as the money is put back into local businesses. But it also costs the state $110 million in the current fiscal year. It’s currently pegged at 30 percent of the federal EITC. The governor and legislative leaders could reduce the amount or eliminate the credit all together. Republicans generally hate the state EITC, saying it gives money to people who pay no income taxes (because their income is too low). With the currently budget deficit, EITC might get the ax.

The property tax credit against taxpayers’ income tax is an always well-defended program. It allows taxpayers to use a credit of up to $300 against their income tax liability. It was put into effect when the state income tax was enacted as a way to lessen the blow on the middle class. As of now, Malloy’s people say it will be protected and will not be touched. “It’s a pretty solid ‘no’ as to being cut,” one official says. Republicans have targeted the credit in past budget years and Malloy has never been married to it. He had originally proposed to get rid of it altogether in his first budget proposal but ended up reducing it from $500 to the current $300. The credit costs the state $150 million this year according to the General Assembly’s Office of Fiscal Analysis.

There has been a lot of “let’s work together” talk from the minority Republicans, the majority Democrats in the legislature and the Malloy administration on filling the budget gap. That might be short-lived. Republicans will likely look to simply cut spending. Democrats will want to save existing social programs. The special session is Dec. 19th.

Malloy has said there will be no increase in taxes. However, that applies only to new taxes or increased rates on existing taxes. It’s doesn’t mean people won’t be paying more.

Your thoughts?

Loading Facebook Comments ...


  1. Excellent website. A lot of helpful information here. I’m sending it to several friends ans additionally sharing in delicious. And naturally, thank you to your sweat!

  2. “Are you seeking to find for more data related to mobile marketing? Be careful what text message marketing business you use. There are some glaring differences in them.”

  3. continuously i used to read smaller articles or reviews which also clear their motive, and that is
    also happening with this piece of writing which I am reading at this place.

  4. Great work! This is the type of info that should be shared around the internet. Shame on Google for not positioning this post higher! Come on over and visit my website . Thanks =)

  5. This is the precise Popular Tax Credits on the Budget Chopping Block? | The Hanging Shad blog for anyone who wants to act out out nearly this content. You observation so untold its nigh debilitating to contend with you (not that I real would want…HaHa). You definitely put a new twirl on a topic thats been scrawled active for period. Respectable substance, simply large!

  6. Quite cool Mr. Elliot. I am starved for missives from the mailbox. I’ll admit it, I even open junk mail. (Hey, maybe it’s a check with a lot of zeros at the end.) Such a sad existence for me when my an individual a small rush of importance is ripping open junk mail. Bills can wait around, so a real letter sounds excellent. Will subscribe.
    Cheers, Iris

  7. Please let me know if you’re looking for a article author for your weblog. You have some really great posts and I believe I would be a good asset. If you ever want to take some of the load off, I’d love to write some articles for your blog in exchange for a link back to mine. Please shoot me an email if interested. Thanks!|Have you ever considered about including a little bit more than just your articles? I mean, what you say is valuable and everything. Nevertheless think of if you added some great graphics or video clips to give your posts more, “pop”! Your content is excellent but with images and video clips, this site could certainly be one of the best in its niche. Great blog!|Great blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog stand out. Please let me know where you got your design. Thank you|Hi would you mind stating which blog platform you’re using? I’m going to start my own blog in the near future but I’m having a difficult time making a decision between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your layout seems different then most blogs and I’m looking for something unique. P.S My apologies for being off-topic but I had to ask!|Howdy just wanted to give you a quick heads up. The words in your article seem to be running off the screen in Internet explorer. I’m not sure if this is a formatting issue or something to do with internet browser compatibility but I figured I’d post to let you know. The layout look great though! Hope you get the problem resolved soon. Cheers|With havin so much written content do you ever run into any problems of plagorism or copyright infringement? My blog has a lot of exclusive content I’ve either written myself or outsourced but it looks like a lot of it is popping it up all over the web without my agreement. Do you know any ways to help stop content from being ripped off? I’d truly appreciate it.|Have you ever thought about writing an ebook or guest authoring on other websites? I have a blog centered on the same topics you discuss and would love to have you share some stories/information. I know my visitors would value your work. If you are even remotely interested, feel free to send me an e mail.|Hey! Someone in my Facebook group shared this site with us so I came to take a look. I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers! Great blog and brilliant design.|Fantastic blog! Do you have any tips and hints for aspiring writers? I’m hoping to start my own site soon but I’m a little lost on everything. Would you propose starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally overwhelmed .. Any recommendations? Bless you!|My coder is trying to persuade me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using Movable-type on several websites for about a year and am nervous about switching to another platform. I have heard good things about blogengine.net. Is there a way I can import all my wordpress content into it? Any help would be greatly appreciated!|Does your blog have a contact page? I’m having a tough time locating it but, I’d like to send you an e-mail. I’ve got some suggestions for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it expand over time.|It’s a shame you don’t have a donate button! I’d most certainly donate to this outstanding blog! I guess for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to new updates and will share this blog with my Facebook group. Talk soon!|Greetings from Idaho! I’m bored at work so I decided to browse your website on my iphone during lunch break. I really like the information you present here and can’t wait to take a look when I get home. I’m shocked at how quick your blog loaded on my cell phone .. I’m not even using WIFI, just 3G .. Anyhow, great blog!|Good day! I know this is kinda off topic but I’d figured I’d ask. Would you be interested in trading links or maybe guest authoring a blog article or vice-versa? My blog discusses a lot of the same topics as yours and I think we could greatly benefit from each other. If you are interested feel free to shoot me an email. I look forward to hearing from you! Terrific blog by the way!

  8. Admiring is the time and energy you have put into your blog. This is great! Mate you perhaps might want to take a look at my e-book search to find something more.

  9. This is the rectify Popular Tax Credits on the Budget Chopping Block? | The Hanging Shad diary for anyone who wants to act out out near this substance. You react so such its nearly wearing to represent with you (not that I really would want…HaHa). You definitely put a new protract on a substance thats been codified nearly for eld. Good matter, just majuscule!

  10. This is the penalise Popular Tax Credits on the Budget Chopping Block? | The Hanging Shad journal for anyone who wants to move out out nigh this matter. You observation so overmuch its virtually effortful to debate with you (not that I really would want…HaHa). You definitely put a new acrobatics on a matter thats been inscribed most for eld. Prissy nonsensicality, just large!

  11. This is the correct Popular Tax Credits on the Budget Chopping Block? | The Hanging Shad journal for anyone who wants to attempt out out roughly this topic. You request so overmuch its almost debilitating to contend with you (not that I real would want…HaHa). You definitely put a new whirl on a theme thats been printed nearly for age. Good stuff, but major!

  12. The other day, while I was at work, my sister stole my iphone and tested to see if it can survive a twenty five foot drop, just so she can be a youtube sensation. My apple ipad is now broken and she has 83 views. I know this is completely off topic but I had to share it with someone!|

  13. This is the reverse Popular Tax Credits on the Budget Chopping Block? | The Hanging Shad journal for anyone who wants to move out out almost this content. You remark so often its nigh wearing to represent with you (not that I really would want…HaHa). You definitely put a new extend on a message thats been scripted roughly for eld. Prissy clog, simply major!

Comments are closed.