CT Republicans Renew Calls for $1.2 Billion in Tax Relief, as Federal “Limits” on Tax Cuts Skyrocket
May 3, 2022Senate Republican Leader Kevin Kelly (R-Stratford) and Senate Republican Leader Pro Tempore Paul Formica (R-East Lyme) are urging lawmakers to support far greater tax relief for CT’s working- and middle-class families than what is included in the Democrats’ budget adjustment agreement with Governor Ned Lamont, which is now being debated in the State Senate.
“The spending growth in the Democrats’ budget adjustment is massive, but the tax relief is underwhelming, insufficient, and shortchanges taxpayers. Connecticut can deliver $1.2 billion in immediate tax relief proposed by Republicans to CT residents. We can do it without violating any perceived federal limitations. And we can do it while contributing a historic amount to our unfunded pension liabilities. There is no reason Connecticut cannot deliver over a billion dollars in tax relief today. Except that CT Democrats would rather spend more than tax less,” said Kelly and Formica.
CT Democrats have argued that Connecticut is limited in the amount of tax relief the state can offer due to federal COVID-19 rules. However, since the state’s revenue collections have increased further, that “limit” has increased too. New nonpartisan fiscal data pegs the new “limit” at over $1.4 billion in allowable tax relief.
“This means we can deliver the entire CT Republican tax relief package and still remain under the limit Democrats have refused to challenge,” said Kelly and Formica.
CT Republicans are urging lawmakers to adopt immediate, significant tax relief including:
- reducing the state income tax for low- and middle-income families and individuals
- reducing the state sales tax and eliminate the meals tax through the end of the year
- extending the gas tax suspension through the end of the year
- cut the tax on diesel
- eliminating the state’s new truck tax
- accelerating the elimination of the income tax on pension and annuities
- reducing burdens on job creators by paying down on the state’s unemployment trust fund loan.
- expanding property tax relief
“Connecticut has overtaxed its residents at a level that is staggering at a time when inflation is crushing family budgets. The right thing to do is to return these dollars to CT residents. Instead, CT Democrats are spending it and growing government. Their budget adjustment increases spending by $2.3 billion over the enacted budget. The tax changes Democrats offer are underwhelming, temporary, and not immediate. They do not even come close to undoing the new tax increases imposed on CT families in recent years, including the $1.8 billion tax increase in Gov. Lamont’s first budget,” said Kelly and Formica.
“The responsible choice, and the right choice, is to provide immediate, significant relief to CT families today. Tax credits in the future are nice, but alone they are not nearly enough to make a difference in the lives of working- and middle-class families today when they are feeling the pain. Connecticut Democrats have overtaxed our families, and their immediate reaction is to overspend and grow government, not to provide the level of relief CT families need now.”
Watch CT Senate Republicans discuss the budget with CT Capitol press:
Read CT Republicans’ proposal for $1.2 billion in tax relief.