Sen. Hwang highlights largest
personal income tax cut in the state’s history
Pledges to continue to push for
additional sustainable tax relief in the future
Sen. Tony Hwang, Ranking Senator of the Bonding Subcommittee on the legislature’s Finance, Revenue and Bonding Committee, joined lawmakers at the State Capitol on Dec. 20 to highlight the most significant tax cuts in state history which take effect on Jan. 1, 2024.
While maintaining spending restraints, the budget:
- increases funding for nonprofits
- preserves bipartisan fiscal guardrails
- significantly pays down long term debt
- continues full phase-in funding of local education
- increases funding to cities and small towns
- provides tax relief to seniors and working families
- Reduces the state income tax by lowering the 5.0% rate to 4.5% and the 3.0% rate to 2.0% for the income year 2024. The benefits will be capped at $150,000 for single filers and $300,000 for joint filers.
- One million tax filers will benefit from the rate cuts – nearly 60% of all filers.
- 82% of the benefit will go to filers making less than $150,000
- Increases the Earned Income Tax Credit from 30.5% to 40%.
- 211,000 filers will benefit from the EITC increase.
- Eliminates retirement income tax cliff by adding a phase-out for allowable pension and annuity and IRA distribution deductions against the Personal Income Tax.
- Total personal income tax relief between the above three items is approximately $460.3 million.
“We must continue working together to create an environment for business expansion, retention and recruitment that will result in jobs and tax base growth,” Sen. Hwang added. “Connecticut still has a high cost of doing business, we must address our workforce shortages, and we must stop passing regulations which restrict business growth and economic development. In the 2024 legislative session, I will be a strong advocate for promoting vocational and trade education, developing college-to-career pathways, boosting business and economic marketing, and funding infrastructure improvements. Let’s grow Connecticut’s economy.”
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