HARTFORD – State Reps. Mitch Bolinsky (R-106) and Tony Scott (R-112) along with Connecticut Senate and House Republican colleagues today, unveiled a $1.2 billion tax relief package aimed directly at providing tax savings for 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.
Bolinsky observed: “Connecticut’s current operating surplus has swollen to about $4-Billion. That cash did not appear magically, it is a result of every taxpaying individual and business in our state being overtaxed for services promised and not delivered, especially during the two-years in which the state government was not responsive to hundreds of thousands of urgent taxpayer requests for help. Anyone who questions that should ask themselves ‘What’s improved over the past two-plus years?’ ‘How are our roads?’ What’s moving forward in our public schools?’
‘Where’s the grand plan for our economy in this state, where fewer people are employed today than before the pandemic and, fewer even than prior to the 2008 economic downturn?’ ‘Where did our tax dollars go?’
Rep. Scott stated: “Several weeks ago, we voted in favor of suspending the gas tax because we were hearing from our constituents about the financial struggles caused by skyrocketing prices at the pump and at the grocery store, which have been caused by record inflation that has hit a 40-year high. As a result, those cost increases have led to increases in state tax revenue and that needs to be returned into the hands of the people who need it the most, our taxpayers. Our plan does just that, by cutting taxes on the goods and services that people use every day. Though that won’t solve all our financial problems, it’s a start and it will provide immediate financial relief for Connecticut residents.”
Rep Bolinsky concluded, saying: “It’s time to return the overpayments to the taxpayers! The Governor and his legislative majority are pushing budgets as it the overtax-surplus is something they’re entitled to spend as they see fit. In a time of historically-high inflation, energy costs and stagnant private sector wages, working people can put this money – THEIR MONEY – to better use than the folks who are married to special-interests in Hartford ever can. When all is said and done, we’ll still have Billions in ARPA dollars and federal infrastructure funds to invest.”
The plan maintains a balanced budget while returning to CT residents nearly $1 billion in inflation-related windfall revenue.
$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.
Legislative Republicans, including Reps. Bolinsky and Scott 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.