Cutting Taxes for Those Most in NeedJuly 19, 2023
Connecticut recently got a national shout-out for adopting a state budget that includes a variety of tax cuts for those who need the most help such as working families and retirees.
According to an article from the Center on Budget and Policy Priorities, Connecticut is a leader on tax relief for low-and middle-income earners.
"Another emerging bright spot is Connecticut. Even though state lawmakers chose to reduce personal income tax rates and thereby weaken revenues, they did so in a relatively modest and targeted way that will mostly benefit low- and middle-income taxpayers, rather than people at the very top," the article reads.
While other states cut taxes for the wealthy and corporations, Connecticut stands out for providing nearly $500 million in relief for individuals and families.
Some of the highlights of tax relief we passed this year include:
- Lowering the state income tax rates to save many middle-class households $300-$500 a year
- Raising the state income tax credit from 30.5% to 40% of the federal Earned Income Tax Credit - providing $210 on average for households earning less than $60,000 per year
- Expanding an existing exemption for pension and annuity earnings, providing additional financial security for retirees and those close to retirement
When our most vulnerable get the support they deserve, they can contribute to Connecticut's continued growth.
Read more about tax relief in our state in this article from CT Mirror.