Lamont proposes $336 million in tax cuts
With Connecticut expecting a $1.5 billion budget surplus this year, Governor Ned Lamont has a plan to reduce taxes for state residents.
When the General Assembly reconvenes next week, Lamont will propose cutting taxes by $336 million.
That’s how much the state can afford because of the federal pandemic relief it received, said Lamont.
“Under federal law you are only allowed to cut taxes up to a certain amount based on the federal money we received, but I think we are making a difference,” Lamont said.
Most of the cuts would go to reducing property taxes by increasing the state’s property tax credit from $200 to $300 a year — and expanding it to include more than a million taxpayers.
“We now have some organic growth that allows us to provide significant tax relief to the people of Connecticut because we’ve earned it,” said Lamont.
The governor is proposing reducing the state cap on municipal motor vehicle taxes which would save car owners in the state’s high tax cities about $160 million a year. His plan would also accelerate the phase in of pension and annuities exemptions from income taxes. And it would expand an existing state student loan tax credit to cover up to 32,000 students.
Republicans have asked for cuts to some state sales taxes. But Lamont said he is not considering that because such a tax cut would not be limited to state residents.
Lamont will present his plan to lawmakers when the General Assembly reconvenes next week.