Democratic gubernatorial nominee Ned Lamont’s plan to spend $400 million on a property tax relief plan is much less grandiose than his GOP rival’s pitch to end Connecticut’s income tax.
But while Lamont maintains it’s the only realistic plan, it remains unclear whether the state could deliver this tax cut — while facing multi-billion-dollar deficits — and sustain it in an age of surging pension costs.
“Decades of fiscal mismanagement mean we can’t afford pie-in-the-sky promises, so I’m proposing a smart, achievable commitment to responsibly give middle class families the tax relief they deserve,” Lamont wrote this week in a campaign white paper on his tax relief plan.
Hoping to reverse nearly a decade of erosion to Connecticut’s chief income tax credit for low- and middle-income families, Lamont pledged to:
- Increase the property tax credit within the state income tax from $200 to $300, starting with his second year in office.
- Implement an existing state law that allows households without dependents to again receive the credit starting in the 2019 tax year. [The 2017 legislature suspended eligibility for this group for two years to help balance the budget.]
- Create a new “targeted relief” credit that provides a supplemental credit for households that dedicate 6.5 percent or more of their income toward property taxes. The average credit would be just under $700, though some households could receive as much as $1,200. This would start during the third year of the next gubernatorial term……read entire article by Keith M. Phaneuf here