Connecticut Senate Republicans propose sales tax cut

The Republican leadership of the Connecticut Senate have proposed a temporary reduction of the state”™s sales tax rate.

Under their proposal, Republican envision the sale tax being reduced from 6.35% to 5.99% from Feb. 15 through the end of the year. The proposal also includes the elimination of the additional 1% meals tax during this period.

“Connecticut”™s state budget is benefitting from inflation as the state sales tax and gas tax brings in new, unplanned for revenue ”“ a result of surging prices,” said Senate Republican Leader Kevin Kelly (R-Stratford). “Meanwhile, Connecticut residents are struggling to balance their own family budgets with no relief in sight as inflation drives up the costs of everything, from food to energy to home heating oil.”

In offering the proposal, the Republican legislators pointed out that the state budget was in surplus, with Connecticut expected to collect over $155.2 million more in state sales tax revenue than originally projected in fiscal year 2022 and $144.6 million more in fiscal year.

“The government’s budget grows, while family budgets get crushed,” Kelly added. “There must be a better way, and there is. We want to help working- and middle-class families when it comes to kitchen table economics and reduce every day financial strains that make it harder and harder to budget for a family.”

Gov. Ned Lamont did not publicly comment on the Republican proposal. Last week, the governor offered his own tax relief initiative by announcing the Connecticut Department of Revenue Services would retroactively enhance the 2020 Connecticut Earned Income Tax Credit (EITC) from 23% of the federal credit to 41.5%, which would benefit 198,708 households that earned up to $56,844 in 2020 and filed for that year”™s EITC.

“Enhancing the 2020 Connecticut Earned Income Tax Credit provides direct relief to workers doing their best to provide for their families while confronting pandemic-related costs from masks and tests to childcare and internet access,” Lamont said.