Tax Cut Proposed, Here's Who Qualifies In Lamont's Income Tax Plan

CONNECTICUT — Gov. Ned Lamont unveiled his income tax cut proposal, which would be the first cut in nearly 30 years. The move could save some middle class families nearly $600 annually.

Connecticut taxpayers currently pay 3 percent on the first $10,000 (single filing) or $20,000 (joint filing) of adjusted gross income. Lamont’s proposal would lower that rate to 2 percent.

After that, earnings between $10,001 to $50,000 (single) or $20,001 to $100,000 (joint) in adjusted gross income is taxed at 5 percent. Lamont’s proposal would lower that to 4.5 percent.

The cuts would start Jan. 1, 2024.

The proposal could save some single filers nearly $300 and joint filers nearly $600 per tax year, Lamont said. In total, there would be about $440 million in income tax cuts per year. About 1.1 million of the state’s 1.7 million tax filers will see some cuts as part of the plan.

“We've got a balanced budget plus a surplus,” Lamont said at a news conference. “I wanted to make sure this is something we can do not just for the next year or two… I think people want the consistency and the certainty to know this is a tax cut that is built to last.”

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Here are Connecticut's current tax brackets:

Lamont previously announced a proposal that would increase the state’s earned income tax credit. Families of four earning up to $50,000 per year would pay no income tax under both proposals. He also proposed restoring the state’s business pass-through entity tax credit to its original level.

Department of Revenue Services Commissioner Mark Boughton called the proposal “transformative.”

“When have you ever had a discussion about which taxes to cut, instead of lurching from fiscal crisis to fiscal crisis over the last 40 years,” he said. “I can't remember a time, and it's this team that has done this for us here in the state of Connecticut.”