Sen. Kelly, Reps. Perillo & McGorty Push for $1.2 Billion Tax Relief Plan for Working- and Middle-Class Families
Cuts the Income Tax, Sales Tax, Gas Tax and Returns Overtaxation to CT Families
Read the full plan: https://www.affordableconnecticut.com/wp-content/uploads/2022/04/042122_AffordableCT_SenateHouseGOP.pdf
HARTFORD – Senate Republican Leader Kevin Kelly, Representative Jason Perillo and Representative Ben McGorty joined Connecticut Senate and House Republicans on Thursday to propose a $1.2 billion tax relief package to help Connecticut’s working- and middle-class families.
The proposal reduces the state income tax for low- and middle-income families and individuals, reduces the state sales tax and eliminates the meals tax, extends the gas tax suspension, cuts the tax on diesel, expands property tax relief, eliminates the state’s new truck tax, accelerates the elimination of the income tax on pension and annuities, and reduces burdens on job creators.
The plan maintains a balanced budget while returning to CT residents nearly $1 billion in inflation-related windfall revenue.
“Connecticut is overtaxing its residents and the state’s inflation related windfall must be returned to Connecticut families,” said Senate Republican Leader Kevin Kelly. “Connecticut’s state budget is benefitting from inflation as the state sales tax and gross receipts tax bring in new, unplanned for revenue – a result of surging prices. Meanwhile, CT residents are struggling to balance their own family budgets with no relief in sight as inflation drives up the costs of everything – from food to energy to home heating oil. As a result of inflation, CT families are being overtaxed. Instead of using that revenue to grow government, we must return it to Connecticut’s residents. Families are struggling and they need relief now. This proposal offers immediate tax relief at a time when CT residents are facing the crushing burden of historic inflation. Our plan continues to invest a historic amount in paying down on the state’s unfunded liabilities, maintains a significant budget surplus, and returns the overtaxation of CT residents to families most in need.”
“This plan provides middle income earners with significant and meaningful sales and income tax breaks that saves them significant money,” Rep. Perillo said. “The governor’s plan does next to nothing for the average family in Shelton.”
“Families and residents of Shelton are looking for relief from overtaxation that the Governor and the majority party have not provided. We are in a unique situation which allows us to return some of the state’s over-collection back to the pockets of working- and middle-class families across the state to provide necessary relief from soaring costs and constant tax increases,” Rep. McGorty said. “This comprehensive plan proposed by Senate and House Republicans addresses the needs of Connecticut residents at the source and puts money back in their pockets when they need it most.”
$1.2 Billion in Tax Relief
The CT Republican plan will:
- Cut the income tax from 5% to 4% for individuals earning less than $75,000 and joint filers earning less than $175,000 annually.
- Reduce the sales tax and eliminate the 1% meals tax through the end of the year.
- Extend the gas tax suspension, scheduled to expire at the end of June, to the end of the year.
- Expand the gas tax holiday to diesel.
- Eliminate the highway use tax, a mileage tax on trucks that will increase the price of food and products transported by truck.
- Eliminate the income tax on pension and annuities immediately.
- Expand eligibility for the state’s property tax credit.
- Reduce new tax burdens on job creators by helping to pay back the state’s federal loan to support the state’s unemployment trust fund, removing barriers to job creation.
Connecticut Republicans are pushing back against Governor Ned Lamont’s view that Connecticut is limited in providing tax relief by the federal American Rescue Plan Act. At least three district courts disagree with the Governor’s view and at least 18 other states have challenged President Biden’s unconstitutional overreach on a state’s tax cutting ability. Their success in the courts has allowed these states to provide significant bipartisan tax relief to their residents with Republican and Democratic governors signing income tax cuts into law.
Assuming the Department of Justice appeals the Texas court decision to the Fifth Circuit, CT Republicans intend to file an amicus brief supporting the arguments made by other state’s challenging the tax relief restrictions contained in the American Rescue Plan Act. They previously sought support from Governor Ned Lamont, Attorney General William Tong, and Democratic members of the General Assembly in this challenge. Thus far, CT Democrats have refused to join in efforts to challenge the White House to provide further tax relief to Connecticut residents.
Learn more at affordableconnecticut.com.