"SEN. LOONEY:
"REP. STAPLES: (96th)
Thank you, Mr. Speaker. Just to complete my
comments on it, the heart of the Amendment before us, as I stated, makes
substantial changes to our income tax system to make it more fair, progressive
and equitable, increases property tax relief substantially to a number of our
constituents, establishes an earned income tax credit for the first time in
Connecticut which will provide substantial relief, and reduces by reducing the
lower rate of the income tax providing $ 145 million of reduction in income tax
burden for people who are paying taxes between the $ 20,000 and $ 100,000
income tax level.
In total, Mr. Speaker, the Bill before us reduces
taxes to the tune of about $ 545 million, primarily through property tax
relief, but also through income tax relief.
In addition, by raising the upper rates, the
income tax rates, the bill before also provides the additional revenue
necessary to fund the appropriations budget and the increases in education,
healthcare and the other important initiatives that are adopted pursuant to the
Appropriations Committee package.
Finally, by making an equitable change to the
estate tax, Mr. Speaker, the Amendment before us removes what many concerned
Members of this Legislature thought was an unfair and inequitable impact on
small estates and by doing so actually reduces the estate tax on all estates
that are under $ 6 million in value.
Overall, Mr. Speaker, I urge my colleagues to support this Amendment as before us. I think it makes some very important progressive changes to our tax system and I think provides essential property tax relief to the citizens of Connecticut. Thank you, Mr. Speaker.
. . .
REP. STAPLES: (96th)
. . . The most
substantial item in the tax package for individuals that may not owe income tax
is the earned income tax credit.
That is for low-income individuals, and it is
a substantial credit for individuals making up to $ 16,000 a year. They might
qualify for credit over $ 900 which for someone at that income level is a very
substantial benefit.
That is the most substantial piece of the tax
package. I would also mention though there are exemptions from the sales tax
for weatherization products and other types of items that they would be
beneficiaries of if they were to purchase them.
Although the spending plan is not before us
today, I think it is relevant to point out that some of the increases that are
in this tax package are intended to provide additional aid to cities and towns
that would enable them to moderate their property taxes.
And that would also impact people who don't
pay income tax if the municipalities, by the increase in municipal aid, were
able to reduce or eliminate the increases on their property taxes. Through you,
Mr. Speaker."