Tax-Credit Plan Aims To Keep Grads in Connecticut
The Connecticut proposal would base the amount of the tax credits on a percentage of the graduate's total income. Lawmakers don't have a current estimate for how much the tax break would cost the state.
Connecticut's population growth for people between the ages of 20 and 34 has been a mixed bag for the state. It lost more residents in this age group to other states than it gained for seven of the past eight years. But if people who moved to Connecticut from abroad are included, the state added more people in that age group than it lost each year during that same time frame.
A 2016 survey by the University of Connecticut found that its college graduates were more likely to work in the state if they also had attended high school in Connecticut. The poll found that 75% of 1,475 people who attended high school in the state and graduated from UConn's undergraduate program worked in Connecticut. That figure compares with 26% of 310 graduates for those who didn't attend high school in the state.
Steven Lanza, assistant professor in residence at UConn's Department of Economics, said he's skeptical that tax credits would play a major factor for new graduates deciding where they want to begin their career. Future job opportunities and quality of life are much more likely to be significant factors, he said.
For those who are undecided, however, "this could just be enough to do the trick and convince someone to stay in state rather than leave," he said.
Elliot Rogers, 22 years old, said he's debating whether to move to Massachusetts or stay in Connecticut after he finishes graduate school at the University of Connecticut School of Social Work. He expects to complete graduate school this year with about $42,000 in debt, and said a tax credit could convince him to stay. "Any help...would drive where I live," he said.
(END) Dow Jones Newswires
April 02, 2017 20:03 ET (00:03 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.