Policy Agenda

Since 2019, the number of households below the ALICE Threshold has increased by more than 14%. The latest data show a modest one-year decline, but the broader trend is unmistakable. The gap between what Connecticut families earn and what it costs to live here is not closing on its own.

• The paycheck low-middle-wage families work hard for every day has actually delivered 2% less from 2021 to 2024
  • Basic groceries cost 30% more than before the pandemic
• Gas prices spiked more than 60% this spring and remain over $1 more per gallon than they were last year
• Health insurance providers and utility companies are seeking double-digit rate increases
• Recently, 80% of low-income parents across Connecticut said they could not cover a $1,000 emergency expense without going into debt

ALICE families are already working hard, paying taxes, caring for loved ones and contributing to our communities. They are asking for stability, opportunity and a stronger future.

Together, let’s close this gap and build a Connecticut where every family has the chance to thrive.

Establish a Fully Refundable Connecticut Child Tax Credit

• Benefits more than 550,000 children and 75% of all CT families
• Returns money to parents to help them cover essential items their children need that other programs and services do not cover
• Every $1 in CT Child Tax Credit generates $5 in social and economic impact
• Every nearby state with a personal income tax, from New Jersey to Maine, now offers families a state-level Child Tax Credit and Earned Income Tax Credit
• The new $250 EITC boost for children helps qualifying households, but 355,000 ALICE families earn too much to qualify, while still living paycheck to paycheck.
• A 100% refundable credit means families who do not have a tax liability would still receive the full value of the credit