State Sen. Paul Cicarella today joined Connecticut Senate and House Republicans to offer 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.
“Families across the 34th District continue to struggle to stretch their paychecks even further because of historic levels of inflation. Our Republican gas tax suspension and early sales tax-free week was a good start and this is the next step. As I’ve said, we need to keep going because there is no other relief in sight. Connecticut families have been overtaxed and now it’s time to return their money instead of growing government. They need relief right now,” said Senator Cicarella.
$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, legislative Republican leaders announced that they 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.
Read the full plan: https://ctsenaterepublicans.com/wp-content/uploads/2022/04/042122_AffordableCT_SenateHouseGOP.pdf
Learn more at affordableconnecticut.com.