Lamont uses federal COVID money to fund one-time tax relief for poor

Gov. Ned Lamont will redirect $75 million in expiring federal COVID-19 relief into one-time state income tax refunds for Connecticut’s working poor in late February.

But the announcement prompted mixed reactions Wednesday as Republicans noted the relief — about $377 for each of nearly 200,000 households — is aimed at Lamont’s political base just as the Democratic governor enters his re-election year.

It also comes as Lamont faces continued criticism from progressive Democrats for reneging on a 2018 campaign pledge to expand state tax relief for the poor and middle class.

“Enhancing the 2020 Connecticut Earned Income Tax Credit provides direct relief to workers doing their best to provide for their families while confronting pandemic-related costs from masks and tests to child care and internet access,” said the governor, who called the credit “one of the best anti-poverty tools we have. The EITC encourages work, boosts economic stability and uplifts generations to come.”

Read more: https://ctmirror.org/2021/12/29/lamont-uses-federal-covid-money-to-fund-one-time-tax-relief-for-poor/