(photo) Sen. Hwang highlights Jan. 1 CT tax cuts; Pledges to push for additional relief

December 20, 2023
For Immediate Release

Sen. Hwang highlights largest
personal income tax cut in the state’s history

Pledges to continue to push for
additional sustainable tax relief in the future

Sen. Tony Hwang, Ranking Senator of the Bonding Subcommittee on the legislature’s Finance, Revenue and Bonding Committee, joined lawmakers at the State Capitol on Dec. 20 to highlight the most significant tax cuts in state history which take effect on Jan. 1, 2024.

“I voted for this budget, which has a  historic middle class tax cut, adheres to fiscal guardrails, and invests in education, healthcare, non-profits, and municipalities,” Sen. Hwang said.  “The state has overcollected taxes and that relief must be returned to the taxpayers. At the same time, we are remaining disciplined in how taxpayer dollars are spent.  This tax relief helps everyone from seniors to our most vulnerable residents.”

While maintaining spending restraints, the budget:

  • increases funding for nonprofits
  • preserves bipartisan fiscal guardrails
  • significantly pays down long term debt
  • continues full phase-in funding of local education
  • increases funding to cities and small towns
  • provides tax relief to seniors and working families
“Connecticut Republicans have driven the State Capitol discussion toward tax cuts, fiscal responsibility, and supporting our most vulnerable residents,” Sen. Hwang said. “We actually proposed $1.5 billion in property and income tax relief.  Unfortunately our proposal did not get passed by the majority, but $600 million in relief did ultimately get passed.”

The budget:

  • Reduces the state income tax by lowering the 5.0% rate to 4.5% and the 3.0% rate to 2.0% for the income year 2024. The benefits will be capped at $150,000 for single filers and $300,000 for joint filers.
    • One million tax filers will benefit from the rate cuts – nearly 60% of all filers.
    • 82% of the benefit will go to filers making less than $150,000
  • Increases the Earned Income Tax Credit from 30.5% to 40%.
    • 211,000 filers will benefit from the EITC increase.
  • Eliminates retirement income tax cliff by adding a phase-out for allowable pension and annuity and IRA distribution deductions against the Personal Income Tax.
  • Total personal income tax relief between the above three items is approximately $460.3 million.

“We must continue working together to create an environment for business expansion, retention and recruitment that will result in jobs and tax base growth,” Sen. Hwang added. “Connecticut still has a high cost of doing business, we must address our workforce shortages, and we must stop passing regulations which restrict business growth and economic development. In the 2024 legislative session, I will be a strong advocate for promoting vocational and trade education, developing college-to-career pathways, boosting business and economic marketing, and funding infrastructure improvements. Let’s grow Connecticut’s economy.”