Posted on April 21, 2022
Republicans held a news conference this morning to unveil a detailed tax relief plan “An Affordable Connecticut” that goes beyond the temporary relief package they supported earlier in the year. This proposed plan focuses on making broad-based tax cuts, totaling $1.2 billion in relief, that will benefit every Connecticut resident and business. To watch this morning’s press conference, click here.
An Affordable Connecticut
The plan is comprised of the following tax decreases:
- Income Tax Reduction – Lower the income tax rate from 5% to 4% for individuals earning less than $75,000 and joint filers earning less than $175,000 annually.
- Reduce the Sales Tax – Reduce the sales tax from 6.35% to 5.99% and eliminate the additional 1% meals tax on prepared foods from grocery stores and restaurants through the end of calendar year 2022.
- Extend Gas Tax Holiday – Extend state excise tax suspension through the end of 2022.
- Expand Gas Tax Holiday to Diesel – Cut the tax on diesel by 20 cents through end of 2022.
- Eliminate Highway Use Tax – Total relief of an aggregate $45 million.
- Eliminate Income Tax on Retirement Income – Increase deduction from 56% to 100% in 2022 & beyond.
- Expand Property Tax Credit – Expand eligibility for the state’s property tax credit.
- Cut New Tax on Job Creators – Dedicate the remaining $224.8 million in American Rescue Plan Act funds to repay the state’s Unemployment Trust Fund Loan.
To review additional details of the plan, click here.