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Voices Speaking

February 20, 2013

America is Becoming More American

Orlando Rodriguez, M.A.

Student gradNew research suggests that Connecticut’s future economic success and our ability to support an aging population will be driven by immigration.  According to a recent report from the Pew Research Center, 93 percent of the growth in America’s working‑age population will be from immigrants and their U.S.-born children.  The study forecasts that by 2050 there could be 80.6 million U.S-born children of immigrants nationwide.  Because of declining fertility rates nationwide, and in Connecticut, there is an increasing dependence on immigrants to drive population growth, and with it economic growth.  This is particularly of concern in Connecticut, which has a rapidly aging workforce and a projected decline in its working-age population.  Nationally, most immigrants are Hispanic or Asian, and the same is true in Connecticut.

The statewide total fertility rate in Connecticut declined over the last two decades, and was below the replacement level for all major racial and ethnic groups in the state in 2010.  From 2004 through 2010, the non-Hispanic white population in Connecticut had more deaths than births, while there were more births than deaths among the minority population.  In short, in-state population growth is coming from the minority population.  People moving to Connecticut are also mostly minorities.  From 2000 to 2010, roughly 81,000 non-Hispanic whites left the state and about 127,000 minorities moved in.

Based on Pew’s analysis of U.S. Census Bureau data, first generation immigrants (foreign-born) identify closely with their country of birth, but their second generation (U.S-born) children are less likely to do so.  Furthermore, 90 percent of children of Hispanic or Asian immigrants speak English proficiently; they are more likely than their parents to have friends from other racial/ethnic groups; and they are more likely than the typical U.S. adult to marry someone with a different ancestry. 

U.S.-born children of immigrants are more economically successful than their parents and have incomes similar to the typical U.S. household.  These second generation Americans have a similar rate of homeownership to the national average; they have lower rates of poverty; and higher levels of educational attainment.  Seventy-eight percent of second generation Hispanics and 72 percent of second generation Asians believe they can improve their economic success through hard work.  Overall, only 58 percent of U.S. adults believe similarly.

The U.S.-born children of immigrants are making America more American as they expand our immigrant heritage, and they will make significant and needed contributions to the country’s, and Connecticut’s, economic growth.  What is quintessentially more American than the American-ized children of immigrants?

Issue Area:
Family Economic Security
January 10, 2013

Connecticut's EITC: One Year In, A Success

Matt Santacroce

Last year, working families in Connecticut were able to file for a state earned-income tax credit (EITC) for the first time – and according to a new analysis released by the Fiscal Policy Center at Connecticut Voices and the Connecticut Association for Human Services, the credit has been a resounding success.  The analysis, based on data prepared by the state Department of Revenue Services, makes a strong case for the credit. More than 180,000 households in our state received the credit, equal to 30 percent of a filer’s federal EITC amount.  There are EITC recipients in each of Connecticut’s 169 cities and towns – urban and rural, from Westport to Willimantic.  Most importantly, the credit gave a boost of about $600 to working families with an average annual income of about $18,000 – about what a single parent working full-time just above minimum wage would earn in a year.

As the Governor and the legislature set out to close another large budget gap, they should avoid cutbacks in the state EITC.  Now is not the time to raise taxes on the lowest-income working families in our state – cutting the credit in half would amount to a $300 tax hike for these households.  The state EITC keeps money flowing in local economies, improves the fairness of our state’s tax code, and most importantly, helps working people make ends meet. Hundreds of thousands of Connecticut residents lived in a household impacted by the EITC last year – and they depend on a robust, full-refundable credit in the coming years.  

Bonus: For specifics on your town, see our town data sheet.  Also available are 169 one-page handouts for each town.

Issue Areas:
Budget and Tax, Family Economic Security
September 24, 2012

Investing in Poor Children Makes Economic Sense

Orlando Rodriguez, M.A.

It is in everyone’s best interest to ensure that children living in low-income households are supported in achieving their full earnings potential.  One of the many reasons to support children is that they are our economic future – they will grow up to contribute to the state’s economic wealth and to pay taxes that support the social safety net for everyone.  Simply put, children from low-income backgrounds will buy more things and pay more taxes when allowed to reach their full economic potential. This is the topic of a new report from the number crunchers at the National Bureau of Economic Research (NBER).  Their results for the U.S. economy suggest that the state could reap benefits equivalent to 1.28 percent of total disposable income (consumer spending) if families with children who live in poverty received additional support, as more of their children would reach the earnings capacity of the typical child. Furthermore, this increase would be “in perpetuity,” which translates into more private sector jobs and additional tax revenues for state government -- forever.

How many more things would these children buy?  In 2011, personal income in Connecticut was nearly $204 billion, according to the Bureau of Economic Analysis. This study suggests that increasing the income of poor families could potentially generate benefits from additional future income from their children worth about $2.6 billion yearly. Furthermore, the research finds that we would not have to wait long to see the benefits, and middle- and high-income workers would also benefit from increasing economic success among children from low-income households. 

Unfortunately for Connecticut’s future, the percentage of children living in poverty in the state has increased from 10.2 percent in 2001 to 14.9 percent in 2011.  Unless this trend is reversed, we can expect relatively less consumer spending in the future, as more of the state’s consumers will have come from poor homes with lessened opportunities for attaining economic success, and less disposable income.  However, Connecticut’s future is not set in stone and we can increase future consumption, and jobs, by investing more in low-income children now with the prospects of their soon becoming well-paid workers with greater disposable income.

One strategy the NBER report suggests is to lower marginal tax rates for low-income parents, which would give these parents more money to benefit their kids, who will in turn grow up into well-paid workers with more money to spend in Connecticut, resulting in greater economic activity and more jobs for Connecticut residents. 

How much more would investment in children cost?  In a separate new report, the State Department of Education estimates that it would require an additional annual investment of $43.8 million to provide high-quality universal preschool for all low-income children in the state’s poorest districts (along with a one-time investment of $220.6 million for additional classrooms).  Providing universal preschool for all low-income children would be a wise investment towards increasing the economic potential of children living in poverty, and a prudent public investment towards increasing the state’s disposable income by $2.6 billion yearly.

Issue Areas:
Early Care, Family Economic Security
August 23, 2012

Governor’s Business Tax Task Force and Comptroller Release Menu of Reform Options

Wade Gibson, J.D.

After months of deliberation, the Governor’s Business Tax Policy Task Force has released a preliminary list of reforms to improve the efficiency and fairness of business taxation in Connecticut. Voices has been an active champion of calling such a high-profile tax review commission to shed light on a business tax code in dire need of a “defrag.”

The Task Force’s reforms show promise, and a list of additional reforms proposed by Comptroller Lembo is crucial to ensuring the Task Force’s changes succeed in practice. The Comptroller’s reforms include a series of transparency and accountability initiatives, many of which Voices has long argued for. The reforms include:

  • Creating an online searchable database for business tax credits
  • Encouraging towns to produce regular, publicly available reports on property tax abatements
  • Producing annual analyses of who actually pays the taxes levied, and in what amount
  • Enhancing reporting of Department of Economic and Community Development business assistance
  • Improving the Office of Fiscal Analysis’ tax expenditure report
  • Creating a permanent commission to review tax expenditures on an ongoing basis
  • Requiring future tax credits to include annual dollar caps, much as we do already with traditional, appropriated spending

 

Issue Areas:
Budget and Tax, Family Economic Security
August 13, 2012

New Policy Fellow at CT Voices

Michael Sullivan

Please join us in welcoming Kenny Feder, our new Junior Policy Fellow at CT Voices for Children!  Kenny’s research and policy analysis will focus primarily on child welfare, foster care, education, and family economic security. He represents Connecticut Voices on several advocacy coalitions in these issue areas, and works on outreach and engagement with youth in foster care.

Kenny graduated from Wesleyan University with a B.A. in Physics and Psychology. Prior to coming to Connecticut Voices, he worked as a middle school teacher for Breakthrough of Greater Philadelphia. He is a co-founder and former editor-in-chief of Possibilities Pakistan, a non-profit organization that provides peer-to-peer college counseling to Pakistani students seeking a foreign education.

Issue Areas:
Child Welfare, Education, Family Economic Security
August 10, 2012

Voter and Candidate Resources

Michael Sullivan

VoteThere is much at stake for Connecticut's children in the upcoming elections.  To provide background on child and family issues, Connecticut Voices for Children has developed several issue briefs and has distributed these to candidates for Connecticut's state and federal offices. The first set of briefs is available on our Voter and Candidate Resources page, along with links to related publications, lists of Connecticut candidates, and voter registration forms. Additional issue briefs on early care, education, child welfare, and health will be posted in the coming weeks.

The first briefs include:
 

Connecticut has a revenue problem.  Recent non-partisan budget forecasts confirm what Connecticut families already know: the Great Recession is not really over. Personal incomes, business revenues, and as a result, Connecticut’s tax receipts, still lag. Adjusted for inflation, state tax revenues are lower today than they were five years ago, although our needs have continued to grow.  This brief discusses the need to take a balanced approach to the budget deficit that includes revenues to ensure our children, and our state, are equipped to succeed in the future.

Connecticut's revenue system is falling short of providing the revenues we need to maintain the public structures that keep Connecticut strong and vibrant, including our education, health, public safety, environmental protection, and transportation systems. This candidate brief reviews problems with Connecticut's state revenue system.  It outlines measures that can help our revenue system become more reliable, fair, and accountable, such as enacting a more progressive income tax, modernizing the sales tax, lowering Connecticut’s dependence on local property taxes, closing corporate tax loopholes, following through on evaluations of business tax subsidies with changes in policy, and assessing how state and local taxes affect different income groups and business types.

For decades, Connecticut’s lower-income families have faced stagnating wages, rising costs, and growing economic insecurity.  In both good and bad times, Connecticut’s working families have seen their economic opportunities diminish. Even when the economy was growing, wages stagnated or declined for Connecticut’s low- and middle-income workers and an increasing proportion of Connecticut workers earned less than the wage necessary to keep a family of four out of poverty.  The fact sheet suggests making several proven investments in the human capital of the state.

 

Issue Areas:
Budget and Tax, Family Economic Security

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