Budget & Taxes (Income Tax)

SB 69 would eliminate Connecticut's Earned Income Tax Credit (EITC) by repealing the statute (section 12-704e) that created the program. This change would directly affect low-to-moderate income working individuals and families, particularly those with children, who currently qualify for the credit. The bill's key mechanism is the simple repeal of the existing law, removing the eligibility and calculation rules for the credit. As a result, qualifying residents would no longer receive this refundable tax credit, reducing their annual tax refund or increasing their tax liability. The bill does not create new provisions but removes the current program.

SB 67 establishes a legal limit on the total amount of personal income tax revenue the state can collect annually. If tax collections exceed this cap, the state must refund the excess amount proportionally to all personal income taxpayers. The bill directly affects every individual or household paying state personal income tax by guaranteeing refunds when revenue surpasses the set threshold. This policy change creates a binding fiscal constraint on the state’s ability to raise revenue through its income tax system.