A Connecticut advocacy group wants the state to index personal income tax to inflation to address the wage gap and stagnant job growth.
Connecticut Voices for Children Research and Policy Director Patrick O’Brien made the recommendation based on new research that found the state’s job growth lags more than 3% behind the national average.
Connecticut’s minimum wage, which is among the highest in the nation at $16.35, is indexed to inflation. O’Brien argued the state’s personal income tax should be, too.
“It's important to highlight that these automatic annual tax increases offset, at least in part, the benefits of new policies that provide support, making inflation indexing an essential tool for ensuring that other policies actually produce their intended outcomes,” O’Brien said.
The biggest decrease in workers was among women and people aged 25-54 — the groups most likely to raise young families.
“It's essential to make wages fair,” O’Brien said. “This would make it more affordable for low- and middle-wage workers to live and raise families in the state, and the increase in the financial return to work would also help boost the state's labor force and job growth.”
Job growth in Connecticut has been strained since 2008. The state has regained the positions lost during the COVID-19 pandemic but has yet to break its 2008 record.
