Just days before he gives his biennial budget speech to legislators, Gov. Ned Lamont on Monday released details on his income tax cut proposal.
Lamont said his plan includes permanently lowering the 5% tax rate on income up to $50,000 to 4.5%, and lowering the 3% rate on a filer’s first $10,000 to 2% beginning with income year 2024. According to Lamont, the proposal is expected to save taxpayers $440 million annually. Depending on adjusted gross income, some joint filers could receive almost $600 in income tax relief and single filers could save almost $300, Lamont said.
Lamont’s office said about 1.1 million of the state’s 1.7 million tax filers will see some amount of relief under the plan. If approved by the state legislature, Lamont’s plan would be Connecticut’s first income tax rate reduction since 1996, and the largest cut since the income tax was implemented in 1991, according to the governor’s office.
Lamont said it’s one of several tax-relief measures he will include in his fiscal years 2024 and 2025 biennial state budget proposal that he’s scheduled to present to the General Assembly on Wednesday.
He previously outlined plans for a small business tax cut and to permanently increase Connecticut’s Earned Income Tax Credit from 30.5% to 40%, which will allow low-income workers to receive an additional $44.6 million in state tax credits.
