Gov. Lamont delivers state budget address in Hartford
Gov. Ned Lamont delivered his state budget address at the State Capitol today.
Lamont unvieled his two-year budget plan in front of a joint-session of the General Assembly.
A big theme for Lamont and lawmakers this legislative session is making Connecticut more affordable.
Lamont's budget includes several tax relief proposals.
On Monday, Lamont announced he's proposing the state's first personal income tax rate cut since 1996.
The proposed rate changes are predicted to benefit around 1.1 million of the state's 1.7 million tax filers.
Under the reductions, it's estimated joint filers could save around $600, and some single filers could save around $300, depending on their adjusted gross income.
Lamont has also announced plans to increase Connecticut's Earned Income Tax Credit from 30.5% to 40%, which should impact around 211,000 low-income households.
Lamont says he wants to fully restore the Pass-through Entity Tax Credit to help small business owners avoid the federal government's $10,000 cap on state and local tax deductions.
Lamont has also proposed using $20 million in federal COVID-19 recovery funds through the American Rescue Plan Act to cancel overdue medical debts for residents struggling to pay their bills.
The state would contract with a nonprofit organization that buys medical debt and eliminates it at a fraction of the original cost.
It's estimated the $20 million investment would eliminate around $2 billion in medical debt for residents across the state.