The income gap between Connecticut's low income families with children and its most wealthy has grown faster since the mid-1970s than in any other state. 4 Regressivity of Connecticut's state and local taxes exacerbates income inequality by placing greater tax burden on our lower-income families. 5 Welfare reform efforts can be enhanced. Options Exist Sister states have adopted a variety of measures to make children visible in their tax codes. Rather than penalizing families for raising children, they invest in their young families through tax relief that acknowledges, and adjusts for, a household's increased costs when it is raising children.
Many states specifically target relief to lower-income families.
Ten states now have earned income tax credits. Each builds on the federal earned income tax credit, which has been cited as being the single best targeted tax measure to lift low-income families with children out of poverty. 28 states have a child and dependent care credit. Credit is available only for cost of un subsidized child care. This expansion is particularly helpful because housing is a great expense to Connecticut families raising children.