Wednesday, March 16, 2011

The Proposal That No One's Talking About.

While many parts of Governor Malloy’s budget have come under scrutiny for a variety of reasons, there is one proposal that has flown under the radar.
The Earned Income Tax Credit proposal has drawn little fire from politicians and has not been the focus of discussion at the town hall meetings the Governor is having across the state.
The EITC is a tax credit that will be granted to over 100,000 qualifying residents across Connecticut who file but do not pay state income taxes. The EITC will allow these filers to receive a check from the State of Connecticut of up to $1700.00.
That’s right, with a 3.6 Billion dollar deficit, the Malloy administration is proposing that we give a check to people who don’t pay state income taxes to begin with.
The cost to the State of Connecticut is over 100 million dollars in the first year of the budget. It is by far the most expensive new proposal in the Governor’s spending plan.
In an era when the Governor has spoken about shared sacrifice, once again, a segment of our state will not only be spared, they will recieve a windfall from the Governor’s spending plan.
In an era when the Governor has rightly spoken about a crushing deficit that threatens to derail every corner of our state, he has miraculously found the money to start one of the largest social welfare programs in the history of Connecticut.
One has to wonder what public policy benefit there is to giving away money (that’s your money) to people who don’t pay state income taxes at a time when the state is facing a fiscal crisis of biblical proportions.
If this proposal should make it into law, I’m guessing that the constituencies who delivered the election to Malloy in November will make out very well.
Not quite what I would call shared sacrifice.

1 comment:

  1. I found this opinion today, and thought it was a reasonable place to start a discussion. http://www.ctnewsjunkie.com/ctnj.php/archives/entry/op-ed_on_eitc_and_the_budget_deficit_the_first_rule_of_holes_is_to_stop_dig/

    I have to disagree with Mayor Mark's position. I think it is now, when we need to put some money into the hands of the poorest citizens. They are most likely to spend and that is something the economy needs. This is a small down payment on our future.

    And if the "constituencies who delivered the election" are the most downtrodden of our citizens, then 1.) I am glad they are participating in politics and 2.) don't they deserve a break, (like Wall St. got?).

    ReplyDelete