Dan Haar: Payroll tax would replace state income tax under radical new plan (Hearst Connecticut)

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Democrats including Gov. Ned Lamont are preparing to replace most of the state income tax with a payroll tax, a new way to raise cash for the state that would mark the most radical change in Connecticut finances since the income tax started 28 years ago.

The plan would mean a tax cut for every person who works in Connecticut, at least in theory.


The plan came from the Connecticut School Finance Project, a nonprofit, nonpartisan group based in New Haven that works on public finance issues. It was based on thinking that arose after the late-2017 Republican national tax reform act capped federal deductions for state and local taxes at $10,000 — costing Connecticut taxpayers an estimated $2.8 billion.

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