Connecticut Senate Republicans announced a broad tax cut proposal ahead of Democratic Gov. Ned Lamont’s presentation of his two-year budget plan to lawmakers on Wednesday.
They propose an income tax rate cut and a 2% property tax cap for cities and towns. The plan would be paid for in part by a freeze on wage increases for unionized state employees covered by SEBAC—the State Employee Bargaining Agent Coalition.
State Senate Minority Leader Stephen Harding claimed that the high cost of living is driving retirees and others out of Connecticut.
“We could provide immediate relief in payroll and income taxes. And all of it is paid for,” Harding said.
“Whether it be through the interest in ARPA funds, which we just happened to discover a few weeks back. Or, actually putting a wage freeze on the SEBAC agreement,” Harding said.
The plan also proposes cutting professional license fees, reducing the state’s paid family leave tax, tightening the bonding cap and permanently extending the fiscal guardrails on the state budget.
Negotiations on the state’s next two-year budget begin in earnest after Lamont presents his proposal to lawmakers. The budget is not expected to include broad income tax reductions.
