Connecticut Senate Bill SB00691

Connecticut 2023 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

An Act Reducing A Marginal Rate For The Personal Income Tax And Temporarily Adjusting The Rate And Applicability Of The Sales And Use Taxes.

Impact

In addition to the income tax adjustments, the bill also aims to lower the sales and use tax rate to five point nine-nine percent for the next fiscal year. Furthermore, it seeks to suspend the additional one percent tax imposed on meals sold by eating establishments, caterers, or grocery stores for the same period. These measures are intended to directly support consumer spending and help stimulate the local economy amidst challenging economic conditions.

Summary

SB00691 proposes to amend the state's tax structure by reducing the marginal personal income tax rate to four percent specifically for working class and middle-class taxpayers. This reflects an effort to provide financial relief to lower-income residents, aiming to alleviate some of the economic pressure resulting from inflation and rising costs of living. By adjusting the tax rates, the bill hopes to create a more favorable environment for the state's working families.

Contention

While the bill's intention to reduce tax burdens has garnered support from various advocacy groups and constituents who may benefit directly, it has also faced scrutiny and opposition. Critics argue that such tax reductions could impact state revenue, potentially leading to budget deficits and reduced funding for essential services. The long-term sustainability of these tax cuts raises concerns about whether they can be maintained without adversely affecting public services and investments in healthcare, education, and infrastructure.