Connecticut Senate Republicans want deep tax cuts and other cost-cutting measures this legislative session. Their proposal, released on Tuesday, would deliver $1.5 billion in taxpayer savings.
The plan is wide-ranging and marks a significant change in messaging for the caucus. They want to adjust the volatility cap, a fiscal guardrail that prevents the state from spending more than it brings in. Republicans have historically wanted to keep spending down.
Senate Minority Leader Stephen Harding said the cap is likely to be adjusted by the Democratic-controlled legislature. Rather than increasing spending on social services, such as education and housing, Harding favors returning the funds to taxpayers.
“We have a $4 billion plus rainy day fund,” Harding said. “The people of this state have essentially been overtaxed by that much over this period of time, and it's about time that we return the money to them. The Democrats in this building, in the House and the Senate, are committed to changing and modifying the volatility cap. What we're saying here today is, if you're going to modify that volatility cap, once again, return it back to the taxpayer.”
Among the proposals:
- Cutting income taxes for the middle class by around $1,600 for families making $100,000 a year.
- Remove the public benefits charge from electric bills, which goes towards renewable energy and other costs, and fund the programs through the state budget.
- Cutting the payroll tax.
- Capping the property tax cap.
- Eliminating occupational licensing fees.
- Ending the car tax for middle-class families.
State Senator Heather Somers said her party’s plan will provide more meaningful relief than Governor Ned Lamont’s proposed $200 tax rebate.
“We are tired of hearing about these small, little incremental steps that you are trying to make Connecticut affordable,” Somers said. “Not only is it laughable, but it also can't be done overnight. This plan is long-term.”
The plan banks on spending the state’s $4 billion rainy day fund. When asked how the plan would be sustained in the future, Harding said government costs could be cut.
“Over time, we need to make efficiencies in our government,” Harding said. “I mean, when you have enough money to pay two people $400,000 a year to run the university system and then give individual purchase cards to spend on luxury travel and hotels, if you want to call that ‘small ball,’ because we just have so much money rolling around. What we're saying is, let's find efficiencies in that and deliver it back to the people in tax relief.”
Harding said he expects the House Republican caucus to present similar affordability proposals in the coming weeks.
The legislative session runs until May 6.
