Gov. Lamont outlines tax relief efforts

Gov. Lamont's tax cut proposal
Published: Mar. 27, 2023 at 11:08 AM EDT|Updated: Mar. 27, 2023 at 12:19 PM EDT
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MILFORD, CT (WFSB) - The Lamont administration held news conference to talk about ongoing tax relief efforts.

Gov. Ned Lamont participated in a news conference at 11:15 a.m. on Monday at Static Era Records in Milford.

The Lamont administration scheduled a news conference to talk about ongoing tax relief efforts.

Lamont’s tax cut proposals, which are currently under consideration by the General Assembly, included implementing a broad-based reduction in income tax rates that would become the largest income tax rate reduction in state history, as well as increasing the Earned Income Tax Credit for low-income households.

The governor announced the proposals back in February.

He proposed to permanently lower the 5 percent rate to 4.5 percent and the 3 percent rate to 2 percent beginning with income year 2024.

These proposals would help thousands of families and small businesses.

Jay Reason runs Static Era Records, a music store in Milford.

As a small business owner, Reason welcomes a tax break. He opened his store during the pandemic.

“I think for us as long as we can keep buying records and bringing people in that’s the best thing for us. I wish good luck for everybody it’s tough no matter what, no matter where you are,” Reason said.

Lamont highlighted his tax cut proposals in his budget address. Now he’s pushing lawmakers to approve it.

“We are proposing the largest tax cut arguably in state history with a real focus on working families. A real focus on the middle class,” Lamont said.

Families earning under $50,000 would not pay any state income tax. Families earning less than $150,000 would also get a break: $600 for joint filers and $300 for single filers.

There’s also relief for small businesses. Those businesses would get a larger tax credit on their income returns.

This is all possible because of unprecedented dollars in the state surplus and rainy-day fund.

Republicans are on board with the tax cuts but would like to see more relief.

“Yes there are tax decreases, but it would be a welcome day for the state of Connecticut for the people who contribute and pay their tax dollars have some of what they pay come back to them and it’s just not enough,” said Sen. Heather Somers (R-Mystic).

This week finance and appropriation committees are going through all the governor’s tax proposals, then those proposals would have to be voted on by the general assembly.

This proposal is currently under discussion in the General Assembly.