Senate GOP proposes deep cuts to CT tax, electric bills

Connecticut Senate Republicans unveiled a package of tax and utility reforms Tuesday that would slash property taxes and electric bills across the state, setting up a sharp contrast with Democratic leadership ahead of budget negotiations.

The GOP plan calls for eliminating the state income tax on retirement income, capping annual property tax increases at 2 percent, and rolling back recent electric rate hikes that have hit Fairfield County residents particularly hard.

“Connecticut families are being crushed by the cost of living,” said Senate Minority Leader Kevin Kelly, R-Stratford. “These aren’t radical proposals. They’re common-sense reforms that put money back in people’s pockets.”

The Republican package would cost the state roughly $400 million in lost revenue annually, according to preliminary estimates from the nonpartisan Office of Fiscal Analysis. GOP lawmakers said they would offset the cuts by reducing state spending and tapping Connecticut’s budget reserves.

The property tax cap represents the most ambitious piece of the proposal, requiring towns from Greenwich to Hartford to seek voter approval for any tax increases above 2 percent. Municipal leaders have already voiced opposition, arguing the cap would force cuts to local services.

“This is a direct attack on home rule,” said Betsy Gara, executive director of the Connecticut Conference of Municipalities. “Towns know best how to manage their budgets.”

The utility provisions target Eversource and United Illuminating rate increases that took effect last year. Stamford and Norwalk residents saw monthly bills jump by $30 or more, sparking protests at Public Utilities Regulatory Authority hearings.

Senate President Pro Tem Martin Looney, D-New Haven, dismissed the GOP plan as “election-year politics” that would undermine state services and municipal governments.

“Republicans want to have their cake and eat it too,” Looney said. “You can’t cut taxes and maintain the investments Connecticut needs to compete.”

The proposal faces long odds in the Democratic-controlled General Assembly, where leadership has prioritized maintaining current spending levels on education and social services. Gov. Ned Lamont has not commented on the GOP package.

Budget negotiations begin in earnest next month when Lamont releases his spending proposal for the fiscal year starting July 1. Republicans hold just 12 of 36 Senate seats but hope to use the tax issue to pressure Democrats in competitive districts.

The retirement income tax elimination would save Connecticut seniors an average of $2,400 annually, according to Republican estimates. Seven neighboring states already exempt retirement income from taxation.