To support such investments, we provide a variety of tax incentives that, in effect, make the state a fiscal partner in these important investments. Yet children are invisible in Connecticut's income tax code. Modest changes to Connecticut's income tax code, allowing it to retain its simplicity while targeting support to offset some of the costs of raising children, would help make the state a partner with families in these important investments in human capital. They are just one sickness, one accident, one car problem away from sliding back into poverty. Accumulating even a small pool of savings buffers a family from problems that might otherwise become crises.
Assets also provide families with a means for a long-term escape from poverty.
Savings can be used for education for parents and children, purchase of a home or a reliable car to get to work, or to start a small business. Perhaps most importantly, assets give parents a stake in their future. While Connecticut has begun to increase asset limits before supports are reduced, it can do more. Recognizing that families escape poverty through asset accumulation, and not income maintenance alone, a number of states have begun helping low-income families build assets through matched savings accounts. Training is provided to participating families to enhance their skills in managing assets.