Looking for tax relief? Politicians in Hartford are lining up to offer it this year
As the 2026 election nears, both Democrats and Republicans hope to lure voters with tax cuts. But can the state afford them?
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Two decades ago, Oprah Winfrey offered everyone in her audience a car.
This year, in a crucial election cycle, Connecticut politicians are offering everyone a tax cut.
Here is how much each proposal could save you:
COMPETING PLANS
On Thursday, state Senate Democrats rolled out their affordability plan. It includes no sales tax for clothes under $100, school supplies and appliances. Senate Democrats also want to trim the meals tax at grocery stores.
“Trump campaigned on a false promise, which was, ‘I’ll bring down prices on Day 1.’ That was the greatest con in American history because prices have gone up, not down,” said Senate Majority Leader Bob Duff (D-Norwalk). “Grocery prices, prices for clothes, energy costs, have all gone up in the last year.”
Senate Democrats also want to create tax credits for renters and people caring for elderly or disabled relatives, as well as eliminate the state income tax on Social Security benefits.
“Senate Bill 1 really is the topic of making Connecticut more affordable,” said Senate President Martin Looney (D-New Haven).
Meantime, state Senate Republicans want even deeper tax cuts.
Under their plan, unveiled last week, low-income earners wouldn't owe any state income tax – while the middle-class would pay 16-40% less. The GOP is also proposing a 2% cap on local property tax increases.
“We have a $4 billion-plus Rainy Day Fund,” said state Sen. Stephen Harding (R-Brookfield), the Senate GOP leader. “The people of this state have essentially been overtaxed by that much over this period of time. And it’s about time we return the money back to them.”
HEFTY PRICE TAG
But all of these tax cuts come with a steep price tag – more than $1 billion in some cases – which could eat away at state savings as federal cuts loom.
That worries Gov. Ned Lamont, who is running for a rare third term. The fiscally moderate governor is offering much more modest relief – $200 rebate checks.
“I don’t want to put in place any programs that create big deficits in the out years, but we have very strong revenues this year, right now, so I said we can afford to do a $500 million tax rebate,” Lamont told News 12 Connecticut’s “Power and Politics” on Feb. 6.
The rebate checks would go out in October, just weeks before Lamont appears on the November ballot. On Thursday, Senate Democrats also supported a capital gains tax on the wealthy, an idea Lamont – who is a multimillionaire – has rejected numerous times
