FOR IMMEDIATE RELEASE

CONTACT: Hannah Lemek – [email protected] – 860.406.1939 (Cell)

May 10th, 2023

Sen. Fazio, Senate Republicans Propose

“Largest Income & Property Tax Cut in CT’s History.”

Historic “$1.5 Billion Back” Tax Cut for Working and Middle Class Families

Proposal Cuts Income Tax Retroactively, Nearly Doubles Access to Property Tax Relief,

Adheres to Fiscal Guardrails, Invests in Education, Healthcare and Non-Profits

WATCH THE VIDEO

DETAILED PROPOSAL

HARTFORD- Today, Senator Ryan Fazio (R-Greenwich) along with his Senate Republican colleagues, released a two-year, $50.4 billion balanced budget that provides an historic $1.5 billion in broad-based tax relief and protects services for vulnerable residents while abiding by the state’s bipartisan fiscal guardrails.

Senator Fazio began, “Our budget will give the average family over $1,100 of permanent tax relief, equating to the largest middle class tax cut in Connecticut’s history. This proposal is a sustainable and responsible way of reducing excess in bureaucracy returning $1.5 Billion back to taxpayers. Our budget is fiscally responsible and sticking with the guardrails that have helped to secure our surplus.”

“Budgets are about priorities, and this budget makes it easy to see where Connecticut Republicans’ priorities are,” Senate Minority Leader Kevin Kelly said. “We reduce the cost of healthcare for families while expanding access to care.  We provide the largest proposed increase in funding to our non-profit health and human services providers. We respect and preserve the bipartisan financial guardrails, and we deliver the largest tax cut in Connecticut’s history – $1.5 billion back to you, the people who paid it. Connecticut families are taking it on the chin every day, and they need significant and permanent income, property and sales tax relief now.”

Summary of Senate Republican Budget (Download full documentation at CTSenateRepublicans.com)

Tax Relief for Connecticut Residents:

• Total tax relief: $1.52 billion
• Per household, a savings over the biennium of $1,090
• A $325 million retroactive reduction in the state income tax middle-class income tax cut with additional relief for seniors
• A $2,000 per child tax deduction.
• Nearly double access to the $300 property tax credit
• Exempt children’s clothing under $100 from sales tax
• Double the Farm Machinery Tax Exemption
• Eliminate the Highway Use Tax

Examples of relief:

• A single mom with two children making $80,000 saves $775 each year ($135 from property, $180 from child exemption $460 from income)
• A family of four making $125,000 saves $1,045 ($225 from property, $220 from child exemption, $600 from income)
• Single with no dependents earning $40,000 saves $250 ($250 from income)
• Single parent with one child making $30,000 saves $515 ($205 from EITC, $90 from child exemption, $220 from income)
• A couple making $70,000 with an additional $30,000 in pension income saves $2,085 ($1,500 from retirement, $135 from property, $450 from income)

Spending:

• The Senate Republican plan proposes appropriations of $24.9 billion for the 2024 fiscal year and $25.4 billion for the 2025 fiscal year.
• The spending plan is more than $130 million less than what Lamont proposed and $460 million less than what the Appropriations Committee passed.
• It continues the full phase-in of local education funding by 2028 (that’s an additional $48 million in year one and $96 million in year two)
• Fully-funds aid to cities and towns for special education excess costs
• Invests an additional $100 million in non-profit health and human services providers – an increase of 2.5%.
• Creates a reinsurance program that will reduce household healthcare costs up to $7,000 per year
• Begins to move public policy charges off energy bills and onto the state budget for increased transparency
• It cuts:

– $109 million more than the governor in savings for accurately budgeting for vacancies
– $53.7 million based on expenditure trends
– $25.4 million by eliminating inflation adjustments for state agencies
– $29.7 million for position reductions
– $11.7 million for limiting position additions

Pension deposit: The Senate Republican budget uses $250 million in the FY 23 surplus to support tax relief, allowing for an additional pension deposit of more than $2 billion.

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HANNAH LEMEK

PRESS SECRETARY

SENATE REPUBLICAN OFFICE

Cell: (860) 406-1939