Diesel, highway use taxes up for debate as Connecticut GOP calls for more tax cuts

Connecticut Republicans called Tuesday for more tax cuts as inflation continues to drive up the price of food and gasoline, and two more state taxes are slated to hit consumers.

Republicans want a special session before July 1 to block a scheduled increase in the state’s diesel tax that would take effect that day. The precise amount has not been announced yet, but officials said the hike would be about 10 cents per gallon on top of the current diesel rate of 40.1 cents per gallon that is paid mostly by trucks.

Besides blocking the increase, Republicans want to suspend the diesel tax entirely through New Year’s Eve, saving a combined $60 million overall.

“Families are feeling the pain of a government that’s not paying attention,’' said Senate Republican leader Kevin Kelly of Stratford. “They are feeling pain and struggling while government is swimming in cash.’'

In an election-year battle, both Republicans and Democrats are jockeying for position on who can offer the most tax cuts and gain the most credit.

With the state budget surplus growing to record levels, Republicans said the state can use an additional $746 million from the surplus for more tax cuts.

Recent tax cuts

At the same time, Lamont released another commercial Tuesday in his multimillion-dollar battle against Republican Bob Stefanowski, who has pledged to spend $10 million of his own money in a rematch of their 2018 contest that Lamont won by three percentage points.

In the 30-second commercial, Lamont offers the testimonies of three people who appear on the screen and tout the tax cuts.

“Seeing the property tax go down,’' said Thembi Fulse, who is shown with her husband and children, “that means our mortgage will be a little bit lower, so we’re finally able to start saving.’’

While driving his car, Leyden Brousseau says, “I couldn’t do my job without a car. It’s my livelihood. When Governor Lamont cut the car tax, it felt like I had someone in my corner to help.’'

Christian Plummer, the owner of a landscaping company, said, “Everything we use is using some type of gasoline. Governor Lamont cut the gas tax so we can keep serving our customers.’'

The three Lamont supporters were referring to tax cuts that were approved by the Democratic-controlled legislature in this year’s session that ended last month. The popular property tax credit will be increasing to $300, up from the current $200, for the current calendar year.

Car taxes are being cut in about 75 of the state’s 169 cities and towns. Communities with a mill rate higher than 32.46 would benefit, but there would be no relief for wealthy, low-tax-rate towns like Greenwich, New Canaan, Darien, and Westport.

For towns with a mill rate of 50, for example, the rate for drivers would be reduced to 32.46, and the state would reimburse the towns to make up for the tax revenues that the towns would lose.

Stefanowski has tried to pin rising prices on Lamont and President Joe Biden, however, and promised to cut taxes if elected in November.

““Residents are already struggling with outrageous Biden/Lamont inflation,’’ Stefanowski said recently. “This governor is completely out of touch with the struggles Connecticut households face every day. As your governor, I will put people first and make it more affordable to live, work and raise a family in Connecticut.”

GOP calls for more cuts

Outside the state Capitol on Tuesday, Republicans gathered to call for even more tax cuts.

That includes lowering the state income tax by 20% for individuals earning less than $75,000 per year and couples filing jointly earning less than $175,000 annually. The cost would be $386 million — by far the largest amount of any of the taxes.

Republicans also want to block the highway use tax, commonly known as the truck tax, that would start on Jan. 1, 2023 and generate an estimated $90 million per fiscal year.

Joe Sculley, executive director of the Motor Transport Association of Connecticut, quoted former President Ronald Reagan by saying that businesses don’t pay taxes, they just collect them.

“Your food is going to cost more,’' Sculley predicted. “Your gas is going to cost more. Your clothing is going to cost more.’'

Senate President Pro Tem Martin Looney of New Haven and Bob Duff of Norwalk said the state should not launch into large tax cuts and instead needs to properly use the new-found surplus after years of fiscal mistakes and deficits.

“The Republicans’ short-sighted and foolish fiscal ideas undo the work of the bipartisan 2017 budget and would steer our state right back into the cycle of cuts and tax increases,’' the senators said. “Republicans would rather pit hard-working Americans against each other than blame a Russian warmongering tyrant or the oil corporations lining their own pockets. Now is not the time for political games. Connecticut will not give you a dollar today to take $100 from your grandchild tomorrow.”

Christopher Keating can be reached at ckeating@courant.com