CT Legislative Republicans Pitch $746 Million Tax Relief Plan

CONNECTICUT — Legislative Republican leaders unveiled a $746 million tax relief plan and called for a special session to pass it.

The proposal would tap into the state’s record-setting rainy day fund; it would still leave $3.3 billion in reserves, plus $2.85 billion to pay down pension debt.

“Taxpayers have already given up more than they can afford. And it's more than past time to return that money,” Senate Republican Leader Kevin Kelly said at a news conference.

Some highlights of the proposal:

• Reduce sales tax from 6.35 percent to 5.99 percent.
• Permanently reduce state income tax by 1 percentage point, within certain income limits.
• Expand home energy assistance program for more middle class families.
• Suspend diesel tax, with aim to provide 25-cent per gallon relief.
• Repeal heavy truck mileage tax.
• Eliminate 1 percent meal surcharge tax.

The General Assembly can call itself into special session with a simple majority in both chambers. The governor also possesses the power to call a special session.

Republicans launched a website around the proposal and are planning a number of rallies across the state.

Republicans pitched a $1.2 billion tax relief package during the regular session, but Democrats voted against it.

Legislators passed about $600 million in tax cuts during the regular session as part of a budget adjustment bill. The vote was along party lines in the House, with Democrats supporting it and Republicans opposing. It passed mostly along party lines in the Senate as well.

Republicans and advocates for small trucking companies voiced concern that the diesel tax is expected to increase July 1 and that the tax would be passed on to consumers.

“The diesel fuel tax is expected to increase on July 1, and the consensus view is that it will drive prices for goods and services to a point that’s untenable for so many Connecticut residents,” House Republican Leader Vincent Candelora said.

Diesel averaged $6.19 a gallon in Connecticut as of Tuesday, according AAA. The price fell from its record of $6.44 per gallon average set on May 18, but it is still nearly $3 more expensive than a year ago. The state average for gas was $4.93 per gallon Tuesday, which set another record-high price.

Republicans proposed suspending the diesel tax during the legislative session, but the proposal was shot down by Democrats.

Gov. Ned Lamont said during the legislative session that suspending the diesel tax would mainly help out-of-state truckers.

Ultimately, taxes on diesel and trucks will be passed on to consumers, said Motor Transport Association of Connecticut President Joe Scott.

“Your food is going to cost more, your gas is going to cost more, and your clothing is going to cost more,” he said at a news conference. “There's a lot of talk about who supports small businesses out there. If you support small business, we need to suspend this diesel tax increase.”