Committee reviews proposed EITC expansion, child tax credit age increase and retirement exemptions

Pat Titterton of the Joint Fiscal Office told the Ways & Means Committee the governor's proposal in Committee Bill 25,090 would expand three existing personal-income tax provisions: raise the child tax credit eligibility age to 6, increase the state's earned income tax credit (EITC) percentage for filers without dependents, and bump Social Security income thresholds (and related civil-service-retirement benefits) by $5,000.

Titterton said Vermont's EITC is set as a percentage of the federal credit under chapter 32 of state statute and that the proposed change would increase the percentage for individuals claiming the credit without children from 38% to 100%. He estimated that change would raise foregone revenue by about $3,000,000 per year and bring total EITC-related foregone revenue in the state to roughly $30,000,000 annually. "Pay really close attention to what they're doing in Washington," he said, warning federal changes could flow directly into Vermont because the state ties the credit to federal definitions.

Nut graf: The committee heard…