Connecticut Bills May Bring Changes to Property and Income Tax Calculations | national news

(The Center Square) – As inflation hits 40-year highs, Connecticut lawmakers are considering a set of bills that could make changes to the way property and income taxes are calculated in the United States. to come up.

This legislative session, the General Assembly considers House Bill 5487which could increase state property tax credit thresholds and eliminate some of the eligibility restrictions in place.

Also on the radar of the Legislative Assembly, this session is House Bill 5489which advocates indexation of personal income tax to inflation, and House Bill 5490which would establish a personal income tax deduction on the rent paid, as long as the person’s principal residence is in Connecticut.

During a recent hearing on the package of bills at the Joint Committee on Finance, Revenue and State Bonds, State Rep. Holly Cheeseman, R-East Lyme, said each of them had been revealed through a collaborative process.

“I’m thrilled. This is one of the examples where this is a real bipartisan proposal,” Cheeseman said. other side of the aisle.”

Cheeseman said she considers each of the bills a high priority as inflation continues to challenge people, especially those with middle or lower incomes.

“Hopefully that’s something we can work on because we see inflation going up, people, because of higher wages, are going to be put in those higher tax brackets, so we have to address this problem now before it gets out of control,” Cheeseman said.

During the hearing, the committee heard testimony from two representatives of Connecticut Voices for Children.

Sana Shah, chief of staff for Connecticut Voices, said her organization supports all three bills. She spoke at length about HB 5489.

“Indexing Connecticut’s income tax to inflation is key to making Connecticut’s overall tax system fair to working and middle-class families,” Shah said. “Currently, inflation generates a tax increase through three key elements of state income tax.”

Patrick O’Brien, research and policy fellow at Connecticut Voices, said he views Connecticut’s current tax structure as punitive for middle-income earners.

“Middle-class working families pay an unfair tax burden,” O’Brien said. “The majority of this tax burden, especially for working families, comes from property taxes. We think an increase in the reformed tax credit is particularly important.

With inflation in the mix, O’Brien said, “That really makes it a pretty serious problem for middle-income families.”

At the committee hearing, held March 25, State Sen. John Fonfara, D-Hartford, said he agreed with the “inequities” in Connecticut’s tax structure, but also shed light on more of the state’s economy and the various factors that come into play.

“I would love to see a better balance not only to address the inequity of our tax structure, but also to see how we can grow the economy so that more of the people you advocate for and I represent have the opportunity to sharing the wealth of this state,” Fonfara said, addressing his remarks to O’Brien.

To that end, O’Brien said he was fine with the sentiment.

“If you create a fair tax system, you’ve eased the burden on working-class families,” O’Brien said. “It puts more money in their pockets. They tend to spend that money quickly in the state. We think good fiscal policy is essentially good economic policy.”

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