RELIEF FOR WORKING &
MIDDLE CLASS FAMILIES
CONNECTICUT FAMILIES NEED RELIEF
Connecticut is unaffordable and growing more unaffordable by the day. At the same time, Connecticut is overtaxing its residents. While state revenues surge because of inflation, household budgets are strained to the breaking point. We believe the overtaxation of CT residents must be returned to taxpayers.
During the 2022 legislative session, CT Republicans proposed a $1.2 billion tax relief plan[view the plan here] that would have provided immediate, significant, and long-term tax relief to Connecticut's working- and middle-class families facing historic inflation.
Democrats voted against this tax relief package during the regular legislative session, instead opting for only short term rebates for a select few. Meanwhile, the pain has not stopped for CT families. After the state budget adjustment passed, state revenues grew even further. As government gets richer, CT families are only experiencing more pain. They need further relief.
REPUBLICANS ISSUE A SECOND TAX RELIEF PLAN
Following the 2022 legislative session budget adjustments, Connecticut was projected to close its fiscal year with a $956.4 million surplus. Factoring in the state's revenue cap, this left $746.2 million in surplus funds available immediately to provide further tax relief to residents We proposed to provide tax relief to Connecticut's working and middle class residents immediately by using solely state surplus funds.
This tax relief could have been provided without any budget cuts.
We could have provided this relief and while still contributing a historic $2.85 billion in additional funds to pay down on pension debt.
This relief could have been provided while still preserving a record breaking $3.3 billion in the state budget reserve fund - the maximum amount allowed.
OUR PROPOSED TAX RELIEF
REDUCE INCOME TAX FOR WORKING- AND MIDDLE-CLASS
Lower the income tax rate from 5% to 4% for individuals earning less than $75,000 and joint filers earning less than $175,000 annually.
Total Tax Relief: $386.6 million
EXPAND GAS TAX HOLIDAY TO DIESEL
Eliminate the entire state excise tax on diesel through end of 2022.
Total Tax Relief: $60 million
ELIMINATE HIGHWAY USE TAX (TRUCK TAX)
Total Tax Relief: $45 million
REDUCE THE SALES TAX + ELIMINATE MEALS TAX
Suspend the 1% meals tax on prepared foods and reduce the sales tax from 6.35% to 5.99% through the end of calendar year 2022.
Total Tax Relief: $212.1 million
RELIEF FOR RISING ENERGY COSTS
Bolster assistance to families that need help paying for energy costs like heating oil.
Total Relief: $42.5 million