CT Must Offset Federal Cuts to Public Benefits

Connecticut Voices for Children's new report, The Case and Policy Options for Connecticut to Offset New Federal Cuts to Public Benefits, was released to a crowded room of advocates and organizers at the 25th Tax & Budget Forum.

The report examined how the state’s fiscal controls and tax structure are hurting working class families by limiting sustained, meaningful investments in human needs. The report emphasized how Connecticut can move from temporary fixes to long-term policy choices that make affordability real and fully fund communities being devastated by the MAGA “One Big Beautiful Bill Act” enacted last July.

This Act provides tax cuts that heavily benefit high-income households. Those with incomes above $500,000 a year are estimated to receive 33% of the total tax cut, amounting to $1.5 trillion over the next decade.

The law pays for the tax cuts for high-income households by making about $1.5 trillion in cuts to public benefits, reducing essential support for low- and middle-income households. This includes nearly $1.1 trillion in cuts to health care benefits, including Medicaid; allowing a more than $300 billion expansion of the Premium Tax Credit for health insurance to expire; and cutting food assistance by about $190 billion.

At least150,000 people in Connecticut are expected to lose health insurance and 58,000 households are expected to have food assistance cut. At the same time, the top 10% of households are estimated to gain more than $9,200 each.

The report presented five policy proposals that would make it possible to address these extreme and devastating inequities including raising tax rates on high-income households (single tax filers above $500,000, and married tax filers above $1 million) or high-value estates (worth more than $15 million).

Together, the policy proposals would raise close to $500 million a year, providing resources for Connecticut to close the gap left by the cruel federal cuts to human needs.

Advocates are demanding that in these dire circumstances the Legislature and Governor stand up for the people of Connecticut in this session and make sure that basic needs are funded to address health care, housing, hunger and growing poverty.