A new report found Connecticut might be better off without its film industry tax credit.
The Connecticut Voices for Children report showed the film industry tax credit costs the state more than $60 million dollars a year, which means between 2007 and 2023, the state lost around $900 million.
Patrick O'Brien, research and policy director at Connecticut Voices for Children and author of the report, said it plays into the state's regressive tax system because it is not targeted to low and middle-income families.
"If you're spending about $106 million a year in these film industry tax credits moving forward, only a portion of that is going to ultimately be passed to low and middle-income families within Connecticut," O'Brien pointed out. "A substantial portion of it is likely to be exported out of state entirely."
O'Brien's research does not examine whether the tax credit is worth salvaging but suggested eliminating it would help the state recover the revenue beginning next year. The General Assembly has been weighing legislation to end the tax credit. Though the bill met staunch opposition at a public hearing from people who believe it is good for the state, it has garnered support from Rep. Jason Rojas, D-East Hartford, the House majority leader. The bill awaits committee action.
What would the state do with the money? One suggestion is to put it toward funding a state child tax credit. Many organizations have been calling on lawmakers to establish one. O'Brien noted doing so can economically benefit families and the state.
"Because a state-level child tax credit is so well-targeted, it means that it's going to go entirely to low and middle-income families within the state," O'Brien emphasized. "We know the main driver of economic growth is essentially consumer spending."
It is estimated more than $41 million of the almost $106 million on the film industry tax credits for 2025 could provide support for the bottom 92% of Connecticut households. The report suggested several ways to accomplish it, though using this pot of funding alone might not help as many people as the proposed $600 expanded child tax credit would.
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Even in a stable economy, consumers in Wisconsin and elsewhere still express pessimism and advocates said a key federal agency working on issues like unfair business practices cannot risk losing resources needed to help consumers.
To avoid a government shutdown, Congress has to approve a new federal budget by month's end. Over the summer, House Republicans floated cuts in certain areas, including a 27% funding cut for the Federal Trade Commission.
Erin Witte, director of consumer protection for the Consumer Federation of America, said the timing could not be worse for such a move.
"We've seen people talk a lot about feeling like their costs are increased in lots of ways," Witte pointed out. "The FTC's work is really aimed at trying to lower a lot of those costs, to bring some fairness back to the process."
Last month, the agency co-hosted the first meeting of a task force about whether companies are price-gouging and the effect on consumers. GOP leaders on the Appropriations Committee said they want a financial services bill prioritizing combating terrorism-money activity, maintaining the integrity of financial markets and spurring small business growth.
Witte contends the FTC has made progress in standing up for consumers with great efficiency. She pointed to the proposed "click to cancel" rule, which would remove barriers for people worried about recurring charges for an unwanted subscription for a service or product.
"That would make it as easy for someone to cancel a subscription as it is to sign up for it," Witte explained. "That proposal has gotten thousands of comments from consumers about how much time they are wasting on things like unnecessary subscriptions."
The state-level organization Opportunity Wisconsin has also cited concerns about consumer protections being gutted. It called on Congress to pass clean funding bills without extreme provisions it said would "hurt Wisconsin families." It is unclear if any of the budget ideas floated over the past several months will find their way into a final spending plan.
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Congress is back from recess and lawmakers are hearing from producers about getting a new Farm Bill passed with the latest deadline looming.
North Dakota farmers were among those who traveled to Washington, D.C., to demand progress. More than two dozen North Dakota Farmers Union members were part of a large contingent getting face-to-face time with federal lawmakers this week.
The Farm Bill, last updated in 2018, needs to be reauthorized by the end of the month or elements of the current version will expire.
Bob Kuylen, a farmer from the western half of the state, said the uncertainty comes as small-to-mid-sized producers face the prospect of dwindling profits.
"Inputs are awful high and we're down there in prices quite a ways," Kuylen pointed out.
A glut of crops and other products on the market are resulting in smaller financial returns for the farmers who grow them. The Union said a stronger safety net in a new Farm Bill could make losses easier to absorb. However, with the fall election approaching and a federal budget also needing a vote, complications are mounting in getting the agricultural policy reauthorized.
The Farm Bill also funds key initiatives to address hunger relief like the Supplemental Nutrition Assistance Program. Kuylen noted it shows the sweeping policy touches a lot of facets within the food production system, affecting many Americans.
"Eighty-two percent of the Farm Bill is nutrition," Kuylen explained. "Farmers get a very small part of the Farm Bill. You know, it covers things like conservation programs."
The statistic he cited is reported by the Congressional Research Service. Union voices said the urgency comes as farmers also deal with rising machinery costs and corporate consolidation within agriculture. Last fall, Congress approved a one-year extension of the Farm Bill, prompting fears lawmakers would again let negotiations drag on until the last minute.
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West Virginia lawmakers will convene for a Special Session on Sept. 30, with the state's child care crisis, proposed income tax cuts and supplemental appropriations on the agenda.
The Mountain State's spending on child care is much lower than neighboring states and has steadily declined over the past decade, according to the West Virginia Center on Budget and Policy. It is estimated the parents of around 26,000 children currently lack affordable child care options.
Gov. Jim Justice is reiterating his push for child care tax credits.
"Absolutely try to get our tax break across the finish line with child care," Justice urged. "There's supplemental appropriations that need to be done, and we need to get the money out the door."
Previous bills proposing a child care tax credit for households with incomes less than $65,000 a year have stalled in the Legislature. The Biden administration has said the state needs to contribute between $20 million and $30 million to keep a federal subsidy program afloat for the next year, to direct money to child care centers, making costs more affordable for families.
The governor is also proposing another 5% income tax cut.
"We need another tax break," Justice contended. "I'm very, very hopeful and optimistic that we're going to be able to get it through."
According to state data, tax revenue collections for August were lower than expected at around $403 million and down from last August, when $410 million in tax revenue was collected.
Support for this reporting was provided by The Carnegie Corporation of New York.
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