Posted on June 8, 2022
Yesterday, House and Senate Republicans unveiled a detailed tax relief proposal to help save Connecticut residents from increasing costs on everything from gasoline to groceries.
Our plan – which can be achieved without budget cuts – would provide more than $740 million in tax relief, focusing on:
Connecticut is growing more unaffordable by the day, yet the state continues to overtax its residents. As state revenues surge because of inflation, household budgets are strained to the breaking point.
During the 2022 legislative session, CT Republicans proposed a $1.2 billion tax relief plan that would have provided immediate, significant, and long-term tax relief to Connecticut’s working- and middle-class families facing historic inflation. Democrats voted against that tax relief package during the regular legislative session, instead opting for only short term rebates for a select few.
Since the state budget adjustment passed, state revenues have grown even further. As government gets richer, CT families are only experiencing more pain. They need further relief.
CT Republicans are calling for a special session to make Connecticut more affordable and deliver further tax relief – including relief from rising energy costs and cutting the income tax, sales tax, and taxes that drive up the prices of food.
Tell your lawmakers to hold a special session. Add your voice at AFFORDABLECONNECTICUT.COM
Following the 2022 legislative session budget adjustments, Connecticut is projected to close its fiscal year with a $956.4 million surplus. Factoring in the state’s revenue cap, this leaves $746.2 million in surplus funds available immediately to provide further tax relief.
The following tax relief can be provided to Connecticut’s working and middle-class residents immediately by using solely state surplus funds.
REDUCE INCOME TAX FOR WORKING- AND MIDDLE-CLASS
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.
Total Tax Relief: $386.6 million
EXPAND GAS TAX HOLIDAY TO DIESEL
Eliminate the entire state excise tax on diesel through end of 2022.
Total Tax Relief: $60 million
ELIMINATE HIGHWAY USE TAX (TRUCK TAX)
Total Tax Relief: $45 million
REDUCE THE SALES TAX + ELIMINATE MEALS TAX
Suspend the 1% meals tax on prepared foods and reduce the sales tax from 6.35% to 5.99% through the end of calendar year 2022.
Total Tax Relief: $212.1 million
RELIEF FOR RISING ENERGY COSTS
Bolster assistance to families that need help paying for energy costs like heating oil.
Total Relief: $42.5 million