HARTFORD, Conn. — Taxes took center stage at the state Capitol Monday as lawmakers heard from the public on Gov. Ned Lamont’s tax cut proposal currently making its way through the legislature.
“I have a rare privilege this morning, something very few secretaries of OPM have had,” said Jeffrey Beckham, Secretary of the Office of Policy and Management. “I get to ask for your support for what would be the largest legislative tax cut package in the history of our state.”
Beckham testified in front of the legislature’s Finance Committee Monday, one of 45 state officials, policy advocates and residents giving public comment.
“Considering the state’s strong financial position, the Governor believes it is time for broad-based tax relief for Connecticut's residents,” Beckham said.
This bill includes Lamont's three major proposals: a historic reduction in the state income tax, lowering the rate for the bottom-level income earners from three to two percent, and the next level from five to 4.5 percent.
It would also permanently increase the state’s Earned Income Tax Credit by about 10 percent, putting Connecticut among the top five states in the nation with the largest rates.
Lastly, the governor’s proposal restores the state’s pass-through entity tax credit for business owners.
“When you start putting two, three, six hundred dollars into somebody’s annual income, it impacts them in a way, it takes the pressure off to some extent,” said ranking member on the Finance Committee state Sen. Henri Martin, (R-Bristol).
The Lamont administration estimates the state income tax cut alone would impact around 64% of tax filers in the state and those taxpayers could save $440 million collectively a year.
“We recognize that Connecticut has the dubious distinction of being one of the highest tax-burden states in the country and this is a way long-term, to try to change that,” added House Minority Leader state Rep. Vincent Candelora.
While this measure does have bipartisan support, if approved these tax cuts wouldn’t take effect until January 2024. State Republicans want this implemented as soon as possible.
“We should be doing this retroactively in the start of 2023, rather than 2024,” Martin said. “The taxpayers are gonna start feeling that this year, specifically.”
This bill still needs to be voted out of committee to advance to the floor. Lawmakers say they’ll take into consideration public comments heard Monday, but don’t believe it’ll lead to any amendments or changes to the proposal.
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