Greenwich state Sen. Ryan Fazio stood with fellow Republicans on Wednesday, Sept. 9, as they unveiled a $1.1 billion tax relief package in Hartford.
Fazio, the Republican candidate for governor, joined House and Senate GOP leaders at the Legislative Office Building to pitch the plan, branded "A More Affordable Connecticut." He said he will release his own, similar tax proposals separately but did not give a date.
The centerpiece is a $975 million annual income tax cut for single filers earning up to $100,000 and joint filers earning up to $200,000. The legislature's nonpartisan Office of Fiscal Analysis produced that estimate, CT Post reported.
What the income tax cut would do
The proposal would eliminate the current 2% rate on the first $10,000 of taxable income for single filers and the first $20,000 for joint filers. It would also cut the next bracket's rate from 4.5% to 3% for the same income groups. The cuts start Jan. 1, 2028.
Filers above the targeted thresholds would see no change.
Beyond the income tax
Republicans bundled several other measures into the package, according to CT Mirror:
- A one-year suspension of the 25-cent-per-gallon gasoline excise tax starting July 2027, estimated at $365 million
- Repeal of a 1% surcharge on to-go meals sold at grocery stores
- Repeal of the public benefits charge on electric bills, which Republicans said would save ratepayers about $30 per month
- Repeal of the highway use tax on heavy trucks
- Incentives for municipalities to adopt optional homestead exemptions that reduce local property taxes for eligible homeowners
The additional elements carry an estimated annual cost of $497.6 million.
No spending cuts proposed
Republicans did not identify corresponding spending reductions to pay for the $1.1 billion annual price tag. Democrats criticized the plan because Republicans did not identify corresponding spending reductions to offset its cost. Ian Clarke, a spokesman for the Connecticut Democratic Party, called the package "typical political theater" and said the good ideas in it were "borrowed from Governor Lamont."
Democrats point to the bipartisan income tax cut enacted in 2023 under Gov. Ned Lamont, which lowered the two bottom marginal rates starting in the 2024 tax year. That cut saved most middle-income filers roughly $300 to $400 per year, CT Mirror reported.
Democrats have also argued that reducing the state's surpluses could limit the money available for paying down pension debt. Lamont has used state surpluses since 2020 to pay down more than $11 billion in pension debt, while Connecticut still has more than $30 billion in pension obligations, according to CT Mirror.
House Minority Leader Vincent J. Candelora, R-North Branford, pushed back at the Sept. 9 press conference. "It really is a matter of priority," he said. "Are you serious about fixing the affordability issue or not?"
What comes next
The plan is a campaign platform, not pending legislation. Democrats hold a 102-49 majority in the House and a 25-11 majority in the Senate. Republicans would need to flip both chambers and win the governor's office in the Nov. 3 election to enact it.
Senate Minority Leader Stephen G. Harding, R-Brookfield, acknowledged that not all Republican incumbents and candidates fully support every element of the package.
