HARTFORD – The state Senate Republican Caucus has put forth what they are calling a working class income tax cut and car property tax elimination as an alternative to Gov. Ned Lamont’s tax rebate and scaled-back sales tax.
The Republican plan, which was unveiled Tuesday afternoon, calls for the following:
- A $1 billion income tax cut that would provide a 40% reduction for single filers making $50,000 and joint filers making $100,000, a 16% reduction for single filers making $100,000 and joint filers making $200,000, elimination of income tax for single filers making $25,000 and up to $1,600 in tax relief for joint filers, $800 for single filers (not including the car tax elimination).
The car tax elimination would do the following:
- 100% refundable income tax credit for single filers making less than $100,000 and joint filers making less than $200,000 on property taxes paid to towns on their cars
- No loss of revenue to towns
- Keeping existing $300 property tax credit
“The people on Main Street. The people in our districts no longer should be looked away from,” said Senate Republican Minority Leader Stephen Harding of Brookfield. “We’ve had a $4 billion+ rainy day fund. The people have been overtaxed by that much over that period of time.
“It’s about time we return that money back to them. The Democrats are committed to changing and modifying the volatile cap. What we are saying to them is if you are going to modify that volatility cap once again, return it back to the taxpayer.”
The volatility cap is a fiscal guardrail enacted in 2017 that requires volatile tax revenue —specifically from estimated income taxes and pass-through entities — exceeding a set threshold to be deposited into the Budget Reserve Fund (BRF). The threshold, originally set at $3.15 billion, adjusts annually based on personal income growth, with fiscal year 2026 set to around $4.73 billion.
“What the governor is proposing is here is a $200 one time and walk away,” Harding said. “What we are saying is here is $1.5 billion year after year after year that we are going to provide the hard-working people of this state because they deserve it.”
Lamont’s proposal calls for a single one-time tax rebate of $200 to $400 for most filers, while State Senate Democrats have suggested scaling back the sales tax, expanding the property tax credit, and reinstating the child tax credit.
Senate Majority Leader Bob Duff (D-Norwalk) said he’d also consider all proposals, but also said he wanted to see Republicans present a full spending plan.
“They can talk a good game, but the real proof is going to be whether they’re going to produce a budget or not,” Duff said.
Sen. Ryan Fazio, R-Greenwich, who is challenging Lamont for governor in November, believes the Republican plan will address the state’s high taxes and electricity bills that makes affordability an issue.
“After many years of one-party rule in Hartford, our state has become deeply unaffordable,” Fazio said. “Families are hurting and they deserve better. Today, my Senate Republican colleagues and I are introducing a comprehensive reform plan to make Connecticut affordable and create economic growth for all.
“The past eight years under Gov. Lamont have been characterized by high taxes, electricity bills, and red tape that has made the state unaffordable.”
The Senate Republican Caucus’ Affordability Plan also includes:
- A property tax levy capfor municipalities of the greater of 2% or the cost of inflation. Towns are allowed to override the cap for major projects with 60% vote at referendum
- Elimination of occupational license fees for professions including, electrician, HVAC, plumber, teacher, realtor, speech and language pathologist
- Reduction of Democrats Payroll tax (CT Paid Family Leave) by 20%
- Implementation of the Bipartisan Supported Association Health Plans
- Cutting all Public Benefits Charges from electric bills for end use customers of each electric distribution company and move such expenses to the state budget process
- Cap Power Purchase Agreements at 2.5 times the wholesale price of electricity
- Prohibit Public Utilities Regulatory Authority from enacting programs with ratepayer impact without legislative approval
- Immediate study by state agencies on how to reduce the costs of living and working for the people, businesses, municipalities, and non-profit organizations of Connecticut
“Our entire Senate Republican Caucus will fight to get these common sense affordability measures passed, and we invite majority Democrats to focus on the damage they have done to people’s wallets instead of pointing the finger at Washington D.C.,” Harding said. “Can’t afford Connecticut… can’t afford Connecticut Democrats.”
