Sen. Kelly: CT taxpayers deserve significant and immediate widespread tax relief

February 14, 2023

GOP’s plans were similar
Republican proposals called for cuts in 2022 session

BY PAUL HUGHES
REPUBLICAN-AMERICAN

Republican legislators found two of Lamont’s proposed income tax proposals had a familiar GOP ring to them.

The House and Senate Republicans proposed a marginal rate cut last year and put a price of roughly the same amount of Lamont’s proposed tax cut on the GOP proposal.

The Republican plan recommended lowering the 5% tax rate to 4% for individuals earning less than $75,000 and joint filers earning less than $175,000 annually. The estimated tax savings were nearly $400 million.

The House Republicans proposed legislation to adjust the personal income tax thresholds for people making less than $175,000, reducing the 5% rate to 4%, and indexing income tax thresholds to inflation.
The two GOP caucuses also proposed to reverse a 2019 cut that Lamont and Democrats made to a tax credit available to owners and members of passthrough businesses that choose to have their business earnings taxed at the top personal income tax of 6.99%.

The state added this filing option in 2018 to work around a new $10,000 cap on state and local tax deductions on federal income taxes that was imposed under President Donald Trump in 2017. It accomplishes this through an offsetting income tax credit that can be claimed as a corresponding federal deduction, and eligible businesses are able to pass along the benefit of the deduction to their members.

The tax credit was lowered 93.01% to 87.5% in 2019, and Lamont is proposing to restore the original credit. An estimated 120,000 businesses will benefit from the tax change.

State Rep. Vincent J. Candelora, house minority leader, signaled a willingness on behalf of House Republicans to consider an EITC increase, provided Lamont is able to address GOP concerns about abuse. “The earned income tax credit is something Republicans have been OK with in the past,” he said. “It is a little bit of a giveaway. We are always concerned about the fraud involved in that proposal. So, if he could put more belts and suspenders around it, I think he could get more support.”

Senate Minority Leader Kevin C. Kelly, R-Stratford, observed that Lamont and Democrats rejected the $1.2 billion tax relief plan that the two Republican caucuses proposed last year.
“Connecticut taxpayers deserve significant and immediate widespread tax relief, and Republicans will continue to fight for them,” he said.