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Payroll Tax Plan Moves To Back Burner In Hartford

Connecticut lawmakers chose leaders on key issues at the capitol in Hartford.
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The Connecticut Capitol Building in Hartford

Connecticut Governor Ned Lamont says he’s not ready to endorse a radical new plan to replace the state income tax with a payroll tax to increase state revenue.

The plan would have employers pay a 5% state payroll tax on all wages and salaries. That would mean employees would make 5% less, and reduce the amount they and their employers would pay in federal income tax and social security and Medicaid taxes. Lamont says the plan is worth a look because Connecticut needs to find a way to recover billions of dollars in lost revenue due to the $10,000 limit on state and local tax deductions allowed under federal law.

“It’s a big, complicated bill. I appreciate the intent behind it. But we are going to have to study this really hard. We can’t rush it into this cycle.”

Democrats in the General Assembly’s finance committee support the plan. They say it would give everyone a tax break. But agree it would be complicated to implement.

As WSHU Public Radio’s award-winning senior political reporter, Ebong Udoma draws on his extensive tenure to delve deep into state politics during a major election year.