Posted on June 6, 2023
HARTFORD- State Rep. Greg Howard (R-43) hailed a massive $650 Million tax relief plan for working families and seniors in Connecticut while providing for a significant investment in local education for our children and the state’s not-for-profit organizations.
“This budget does two things that were critical for my support. State education dollars promised, remained, and on an upward trend. Also, the working families of my district received some of their hard-earned tax dollars back with a state income tax cut that will put money back in their pockets”, said Rep. Howard.
The budget plan, HB-6941 An Act Concerning the State Budget For The Biennium Ending June 30, 2025, And Making Appropriations Therefor, and Provisions Related To Revenue And Other Items Implementing the State Budget passed the House of Representatives 139-12.
The State Tax Plan includes:
- The largest personal income tax cut in state history ($190.6 million in fiscal year ’24 and $421.7 million in fiscal year ’25)
- Cuts the marginal income tax rates from 5% to 4.50% and from 3% to 2%
- Phases out the income tax exemption for pension & annuity income and individual retirement accounts—raising the income threshold from $100k to $150k for joint filers and $75k to $100k for single, separate, and head of household filers, effective tax year 2024.
- Freezes scheduled increases on the diesel tax
- Cuts fuel taxes on airlines
The spending plan includes:
- Funds non-profit providers at 2.5% with one-time bonuses
- Commitment to audit the Partnership Plan
- Provides enhanced funding for DDS Residential Waiting List
- Creates a new Fallen Hero account with Comptroller that will provide $100,000 death benefit to the family if a police officer is killed in the line of duty
- Shrinks the cost of government over the long-term and forces government to live within their means by implementing House Republican plan to right-size agency budgets
- Invests $150M in education funding
- Fully funds the Excess Cost grants for special education reimbursements to towns
- Holds towns like Stonington, North Stonington, and Ledyard harmless that would otherwise see a reduction in their ECS funding per the phase in schedule for the next two fiscal years
The budget stays under the State Spending Cap as required under state law.