See Malloy’s Proposed Tax Changes for 2017 HereFebruary 9, 2017
Would you pay more under the new budget from Gov. Dan Malloy (D-Conn.)? Find out with our breakdown here.
On Wednesday, Gov. Dan Malloy (D-Conn.) presented a number of new tax changes that will impact Connecticut residents and businesses. A summary of the major changes here:
Eliminating the $200 property tax credit: $105 million in 2017-18
- Reclaim Connecticut covered the elimination of this popular tax credit, which around one in four Connecticut residents receive, earlier on Wednesday. If you make less than $75,000 a year and own a home, there’s a chance you received that $200 credit and will miss it this year.
Cigarette taxes: $59.8 million in 2017-18
- Malloy’s budget calls for a $0.45/pack tax increase on cigarettes, a $2/ounce increase on snuff, and other changes totaling nearly $60 million in tax hikes
Lowering the Earned Income Tax Credit (EITC): $25 million in 2017-18
- This tax credit mostly benefits low-income earners. If you have two children, for example, your income must be less than $44,648 to qualify. Currently, Connecticut provides a benefit at 27.5 percent of the federal level. Malloy wants to reduce that credit to 25 percent of the federal level.
Hikes on license and permit fees: $18.7 million in 2017-18
- Malloy proposed fee hikes for gun permits (from $140 to $370 for the initial permit and from $70 to $300 for renewal every five years) totalling $9 million
- Malloy also proposed fee hikes for land recording, cremation, licensure of urgent care centers, and criminal history record checks
Together, these four big-ticket items raise $208.5 million in new tax and fee revenue for the state, or nearly two-thirds of Malloy’s proposed changes.
The other third comes from a variety of sources that have a lower impact on residents and businesses, including expected increases in federal grants ($35 million), and cutting deals with tax delinquents to get them to pay back taxes ($15 million personal income, $15 million corporate).
Malloy also proposed a few tax cuts that benefit residents and businesses: 1) easing up on the estate tax (commonly known as the “death tax”), and 2) lowering the insurance premium tax from 1.75 percent to 1.50 percent.
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