Tax cut

From A7 mitting cannabis sales have spent the past several years gearing up for a marijuana-legal Connecticut and have adopted policies and training to suit the state’s new marijuana laws.

See DUI, A10

The governor’s proposal to bolster the state Earned Income Tax Credit is aimed at families that generally will earn between $64,000 and $46,500 in 2023 and would become available with tax returns filed in the winter and spring of 2024.

Lamont is expected to complement this proposal with a broad middle-class income tax that involves the first rate reduction since 1995. The governor will present more details when he presents his budget for the next two fiscal years to the General Assembly on Feb. 8.

“Increasing this tax credit is one of the most impactful things we can do to target direct relief to low-income workers who are providing for their families,” said Lamont, who discussed his EITC proposal during a midday press conference at the Wilson-Gray YMCA Youth and Family Center on Albany Av- enue in Hartford.

Eligibility for the EITC is tied both to income and household size.

According to the federal Internal Revenue Service, a single filer with three or more children must earn no more than $56,838 in 2023 to qualify. Those with fewer or no children face a lower income threshold.

Similarly, a couple filing jointly with three or more children must earn no more than $63,698 to qualify. And while the average household tax relief under Lamont’s new plan would grow by $211, some households will fare much better. For example, the administration says that a couple with two children could receive up to $585 extra.

Increasing the rate to 40% will make Connecticut among the top five states in the nation with the largest EITC rates. Twenty-nine states and the District of Columbia offer their residents an EITC, and the aver- age rate among them is 22%.

Governor Lamont’s proposal to increase Connecticut’s rate will make it higher than each of its neighboring states, including Massachusetts (30%), New York (30%) and Rhode Island (15%).

A credit against the Connecticut income tax, the state EITC was launched in 2011. It originally provided refunds totaling $110 million to about 200,000 working poor families in 2012 an average of $551 per household. But over the past decade, as legislatures struggled with numerous budget deficits, the credit was whittled down to 23% of the federal EITC. Lamont and the General Assembly elevated it to a new high in 2021 when it reached 30.5% of the federal credit. And the governor’s latest proposal would lift it to 40% for the 2023 tax year. This would give Connecticut one of the highest EITC rates in the nation, tied with the District of Columbia and

See Tax cut, A11

Money Matters