Senate Democrats Eye CT Sales Tax Cuts, Renters’ Tax Credits As Part Of Affordability Measures

by Donald Eng CTNewsJunkie

HARTFORD, CT — A series of sales and income tax cuts, renter’s tax credits, health insurance subsidies and more highlighted the affordability measures Senate Democrats proposed Thursday.

The centerpiece, Senate Bill 1, would eliminate the sales tax on school supplies, prepared supermarket meals, clothing under $100 and energy efficient appliances, in addition to establishing renters’ tax credits and eliminating the income tax on Social Security benefits.

Senate President Martin Looney of New Haven said the federal tariffs and cuts to healthcare subsidies had caused an affordability crisis. S.B. 1, he said, “provides relief where families need it most, cutting taxes on clothing, school supplies, and groceries while providing tax credits for those caring for elderly or disabled relatives.”

Majority Leader Bob Duff said the bill prioritizes working families over billionaires.

“Whether it’s eliminating the sales tax on back-to-school clothes and supplies or making sure families aren’t facing unnecessary taxes when they buy groceries, Senate Bill 1 puts money back in people’s pockets,” he said.

Other affordability-related measures included Senate Bill 2, which eliminates the 6.35% sales and use tax on electricity and natural gas for commercial and industrial customers with gross revenue under $10 million. Senate Bill 3 establishes healthcare subsidies for state families earning up to 600% of the federal poverty level, currently set at $30,000 for a family of four.

Other priority bills not related to affordability include Senate Bill 4, which regulates consumer data sales and addresses privacy-related issues such as license plate readers and facial recognition technology. Senate Bill 7 would increase the state’s Educational Cost Sharing foundation from $11,525 per student to $15,500 over four years, and then index the foundation to economic indicators.

Other priorities that do not yet have bills proposed include legislation limiting ICE and prohibiting armed military personnel from entering Connecticut without the governor’s permission, and establishing no-excuse absentee voting.

In response, Senate Minority Leader Stephen Harding, R-Brookfield, said state Democrats had created the affordability crisis.

“Can’t afford Connecticut? Neither can we. And we can’t afford Connecticut Democrats,” he said.

While not addressing the specifics of any of the proposals, Harding pointed out that Senate Republicans last week had unveiled their own affordability plan, which centered on eliminating the car tax and public benefits charge on utility bills and adjustments to the state income tax. The resulting decline in state revenue could be covered in the short term with changes to the state’s volatility cap, which is a limit on so-called volatile tax revenue, primarily personal income and pass-through taxes, he said.

Long-term, Republicans said the plan could work by limiting government growth.