Breaking down Gov. Lamont’s proposed tax cuts
HARTFORD, CT (WFSB) - For the first time in decades, Connecticut residents may be getting a tax cut.
Governor Ned Lamont wants to reduce taxes for lower- and middle-class families. Details will be coming tomorrow when Lamont gives his budget address.
Connecticut has had tax increases but not tax cuts, not since the 1990s.
Eyewitness News is taking a closer look at what this means for working families.
Just weeks after being sworn in, Lamont is setting his priorities, and that includes pushing for tax cuts.
“This is the biggest tax cut since the dawn of the income tax in the state of Connecticut,” said Lamont.
Connecticut has a surplus and more than $3 billion in its rainy-day fund. It’s one of the largest in the country.
“We’ve had several years of surpluses. We will have a fifth surplus this year, and we have ample revenue coming in to afford to do this,” said Office of Policy and Management Secretary Jeff Beckham.
A personal income tax cut could help middle-class families earning less than $150,000. Joint filers would get $600 and single filers would get $300.
Increasing the earned income tax credit would give lower income families, those earning less than $50,000, anywhere between $1,500 and $2,700.
Families are paying a lot more these days for just about everything. Mohammad Elahee, who teaches international business at Quinnipiac University, said this is what people need right now.
“We were suffering from persistent budget deficits but since 2018, we’ve had budget surplus. So, it is time to give back some of the money to the residents,” Elahee said.
It will cost $500 million to give these tax breaks.
“I don’t get food stamps, I don’t have any of those benefits, it comes straight from my check. I am living from paycheck to paycheck,” said Teneisha Joyner.
Joyner is a health care worker who said she can’t afford to get a place of her own. Right now she’s living and taking care of her grandmother.
Economists say tax breaks will help people pay for necessities.
However, the tax cuts would not take effect until next year because tax laws need to be changed. Lamont may need Republican support.
“Philosophically he is on the same page as Republicans when it comes to providing relief to middle and lower income,” said Rep. Vinnie Candelora.
While taxes may be front and center, Lamont is also expected to talk about childcare and training the state’s workforce to fill the many jobs available at his State of the State Address.
The governor’s address is Wednesday around noon.
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