Legislature Urged to Create Fair Tax System and Fund Human Needs

As thousands of families across Connecticut struggle economically, shock waves went up when an IRS “Tax Incidence Report” last month confirmed how much low and middle income families bear the burden of taxes in Connecticut compared to the state's billionaires.

Dozens of members of union, community and faith based groups have testified before the Finance, Revenue and Bonding Committee in the last two weeks for a fair tax structure and full funding of needed services.

Rallies, coordinated by Recovery for All coalition are planned in the coming weeks to send a strong message to the State Legislature to act for a more equitable and just Connecticut.

“The pandemic hit low-wage workers, women and people of color disproportionately. But also, people who never thought they would need food assistance or worry about a job, health care and housing have experienced that reality,” said Tom Connolly speaking on behalf of the Connecticut Communist Party.

“Since the start of the pandemic, Connecticut’s 13 billionaires seized $13.7 billion in additional wealth—while hundreds of thousands of working people, especially working people of color, are suffering,” Connolly testified at the first Finance Committee hearing, adding that “the unfair Connecticut tax system hits the majority in our state the hardest.”

The Tax Incidence Report affirmed that low and middle income families who are suffering economically are paying an average of 25.5% of their income in combined state taxes compared to 1.7% being paid by the state's 13 billionaires.

The Finance Committee is being urged to pass a host of study bills under consideration to correct that inequity and greatly expand available funds for human needs and services.

As well, two related bills to establish a Connecticut Child Tax Credit (HB 5403) and increase the Earned Income Tax Credit (SB 383) are being proposed to assist families and address child poverty.

Twenty-five years ago the Coalition to End child Poverty in Connecticut showed that the result of regressive tax policies in the state is to disallow the ability of children and families to flourish. They proposed a special surtax of 2% on the highest earners, dedicated to the needs of children.

This crisis of child poverty not only persists today, but has become more severe in the midst of the pandemic.

Connecticut Voices for Children reports “in January, 65% of families with children struggled to pay their usual household expenses” like food, mortgage, rent, transportation, child care and health care. The bills under consideration would greatly reduce child poverty and boost the state's economy.

“The top 1% averages $3.1 million in income, about 137 times that of the bottom half,” Connolly told the Finance Committee.

“This obscene wealth in the midst of poverty, unjust tax system, unprecedented deaths from the pandemic, and the thousands of people who have lost their jobs and struggle to survive cannot be tolerated.  A government that cares for its people has the responsibility to ensure that all residents have their basic needs met by balancing the wealth of the state through taxing the rich. “ he concluded.