Sen. Kelly Calls for Additional Tax Relief, Responds to Gov. Lamont’s Claims that CT Faces Tax Reduction Restrictions

Senate Republican Leader Kevin Kelly (R-Stratford) released the following statement in response to comments made today by Governor Ned Lamont and Office of Policy and Management Secretary Jeff Beckham blaming the federal American Rescue Plan Act for restricting the amount of tax relief Connecticut can provide residents:

“CT Democrats could provide far greater tax relief to working- and middle-class families than what we are seeing today. As of today, at least three district courts disagree with the Governor’s view that federal rules tied to ARPA funds limit the amount of tax relief states can provide to their residents. At least 16 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 at least two Democratic governors signing income tax cuts into law. But Gov. Lamont and CT Democrats are refusing to fight for working and middle class families. Instead, they are limiting relief and choosing to overspend, creating bigger budget holes in the future.

“Connecticut has a surplus of over $1.8 billion. We have an inflation related windfall that is bolstering the state budget, at the same time it is crushing family budgets. The federal ARPA language does not mandate over taxation, and that’s exactly what is happening in Connecticut. We’ve asked Governor Lamont and Attorney General Tong to join other states so that Connecticut too can provide relief to taxpayers, and at the very least return the inflation related windfall to working and middle class families who are struggling. But they’ve allowed important deadlines to pass with no action.

“A temporary sales tax break and gas tax suspension are positive first steps, but more must be done. CT Republicans have always supported tax credits, and we are the party that has long fought for eliminating the tax on pension and social security income. We will continue to fight for relief in all forms. But we also must pursue immediate tax relief. Nothing the Governor is proposing in his budget would provide immediate relief today. That’s a problem. Inflation is here. Relief must be too.”