CT Budget, Tax Cuts Pass: 5 Things To Know

CONNECTICUT — The Connecticut legislature passed a budget adjustment bill that includes around $600 million in tax cuts.

The budget season was much different from ones in past years when the state was struggling to plug massive budget deficits. The state has a record budget surplus on its hands. Here are some things to know about the budget adjustments.

What are some tax cuts included?

The bill will suspend the state’s 25-cent gas tax through Dec. 1. It was due to expire June 30.

Also included is a one-year $250 per-child tax credit for up to three children per family. There is an income eligibility cap of $100,000 for individual filers and $200,000 for couples filing jointly.
The property tax credit would increase from $200 to $300 and be expanded to cover more people. Taxpayers currently need to have a dependent or be a senior citizen to qualify.

Car taxes would be capped at 32.46 mills with the state making up the difference for municipalities.

Pensions and annuities won’t be subject to the state income tax under the bill.

What was the vote count?

The Senate voted 24-12 with mostly Democratic senators in favor and Republicans opposed. Two Republicans voted in favor and one Democratic senator opposed. The vote in the House was straight across party lines, according to CT News Junkie.

What was the legislative Republican response?

Republican legislative leaders said the budget didn’t go far enough to provide tax relief to Connecticut residents.

Republicans proposed a $1.2 billion tax relief bill. It included many things in the Democratic plan, plus lowering the state income tax and a temporary sales tax reduction. Lamont said the Republican plan would have run afoul of American Rescue Plan Act funding rules.

However, an Office of Fiscal Analysis report found that the state could cut taxes by up to $1.4 billion. Lamont budget office spokesman Chris Collibee told the CT Mirror that it might be possible to cut more taxes, but the Republican plan would put a massive hole in the state budget.

Republicans offered an amendment to the budget adjustment in the Senate, but it failed.

What did Republican gubernatorial candidate Bob Stefanowski say about the budget

"[Gov. Ned Lamont's first budget raised taxes by $1.9 billion, making CT even more unaffordable," Stefanowski tweeted. "Residents are smart enough to see through an election year facade of temporary tax cuts that do little to reduce gas prices, outrageous utility bills or the highest inflation in 40 years!"

What did Lamont say about the budget?

Lamont pitched many of the tax cuts included in the budget before the legislative session started.

“The General Assembly voted to give taxpayers their largest tax cut in history, while paying down $3.5 billion in unfunded liabilities, making groundbreaking investments in childcare, crime prevention, environment protection, and caring for our most vulnerable residents,” he said in a statement.