• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Economy Connecticut Gov. Lamont optimistic about state economy following tax cut proposal
Economy

Connecticut Gov. Lamont optimistic about state economy following tax cut proposal

by February 9, 2023
by February 9, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Nearly a decade after Connecticut was infamously described as being in a ‘permanent state of fiscal crisis,’ struggling year after year to balance deficit-ridden budgets, Democratic Gov. Ned Lamont on Wednesday proposed the state’s first income tax reduction in nearly 30 years and its largest ever.

Lamont said the state’s fiscal health is now the strongest it’s been in decades, enabling officials to finally focus on addressing Connecticut’s nagging reputation of being a high-cost state.

‘For the first time in over a generation, Connecticut has enjoyed strong economic and population growth,’ he told a joint session of the Democratic-controlled General Assembly. ‘And more taxpayers, a growing economy, coupled with our shared fiscal discipline, has resulted in four consecutive balanced budgets, soon to be five.’

Lamont’s two-year, $50.5 billion budget plan, which still needs legislative approval and faces some pushback from liberals in his party who support raising taxes on the wealthy, would reduce personal income tax rates.

Families, for example, would see their tax rate of 3% on the first $20,000 of earned income and 5% percent of income up to $100,000 a year drop to 2% and 4.5%, respectively. That’s in addition to Lamont’s proposal to increase the earned income tax credit, ensuring families making less than $50,000 will pay no state income tax. More than 200,000 low-income workers are eligible for the credit

Combined, the two proposals are predicted to save low- and middle-income taxpayers nearly $500 million a year.

Lamont also called for increasing funding for affordable housing, childcare programs and local education and canceling overdue medical debt for thousands of residents. And he proposed fully restoring a tax credit that helps business owners avoid a $10,000 federal cap on state and local tax deductions, as well as expanding a tax credit for corporations that provide job training, childcare subsidies, tuition reimbursement and other services to their employees.

Republicans, who welcomed Lamont’s willingness to cut taxes, say it’s time to start giving back to taxpayers, especially considering the current fiscal year is expected to end with a $1.3 billion surplus.

‘I think there’s still a real affordability issue in the state of Connecticut,’ House Minority Leader Vincent Candelora said. ‘So while government has been working well for itself, the residents don’t feel that way.’

Veteran lawmakers acknowledge the prospect of debating which taxes this session to cut is a marked difference from 2014, when former Democratic Gov. Dannel P. Malloy’s budget director, Ben Barnes, warned that the state was in ‘a period of permanent fiscal crisis.’

At that time, Connecticut had experienced multiple years of projected budget deficits and massive unfunded state pension liabilities, forcing Malloy to raise taxes, lay off state employees and cut programs to balance the books.

Lamont and state legislators credit a package of bipartisan fiscal ‘guardrails’ imposed in 2017 for leading to billions of dollars in surpluses in recent years. Those budget controls, which the General Assembly is expected to renew on Thursday, include caps on spending and revenues, including potentially volatile stock market earnings that Connecticut has traditionally relied on heavily.

Despite those reforms, Connecticut still faces challenges, including roughly $88 billion in unfunded pension liability and debt.

‘I think there’s a lot of room for optimism. I also think we need to have some cautious optimism. Why? Because we still have significant long-term liabilities that aren’t addressed,’ House Majority Leader Jason Rojas said. ‘I still think we’re in this kind of transition period in terms of our state’s economy.’

This post appeared first on FOX NEWS
You Might Also Like
  • Chiefs fan mocks Bengals’ loss on the House floor: ‘The Bungles’
  • AOC’s campaign keeps paying Chinese foreign agent, FEC filings show
  • RNC raising the bar for candidates to make the stage at November’s third debate
  • California sheriff torches Newsom for leaving prison system in ‘disarray,’ planning to let murderers walk free
Share
0
FacebookTwitterPinterestWhatsapp

previous post
AOC says GOP reviving ‘legacy of slavery’ by ending non-citizen voting rights in DC
next post
New Mexico legislators propose 7 new gun laws

You may also like

North Carolina bans sex change surgery for minors after GOP...

August 18, 2023

Ohio lawmaker arrested on domestic violence charge

July 12, 2023

‘Stop caving to the woke mobs’: GOP ramps up attacks...

May 4, 2024

Veteran GOP lawmakers grill military academies on if they ‘condone’...

September 21, 2023

Senators demand FBI agents testify about ‘highly credible’ source who...

April 11, 2024

Fed’s Stagflation Warning Impacts Crypto Markets

April 21, 2025

Chatbots Killed the Academic Star

January 12, 2023

Obama State Dept blocked FBI from arresting supporters of Iran...

May 22, 2024

Biden’s ‘pandemic treaty’ would surrender power to WHO bureaucrats, House...

May 23, 2023

Hunter Biden expected to plead not guilty to federal gun...

October 3, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    House Democratic leader’s daughter arrested for...

    January 23, 2023

    West Virginia House passes bill expanding...

    February 2, 2023

    Vermont Gov. Scott calls for civility...

    February 8, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here