Both Democrats and Republicans in Hartford worked for and celebrated the Connecticut gasoline-tax suspension that Gov. Ned Lamont (D) signed in late March, but new data indicate its effect could be lessening.
The center-right Yankee Institute (YI) published an analysis on Saturday showing that the difference between gasoline costs in Connecticut and those in Massachusetts, which did not enact a similar gas-tax holiday, are narrowing.
Connecticut Gov. Ned Lamont (D) indicated Thursday he plans to sign the $24 billion Fiscal Year 2022-23 state budget passed by the Democrat-controlled General Assembly.
Democratic representatives and senators likewise hailed the fiscal plan, noting the nearly $600 million in tax reduction it contains.
Connecticut Republican legislators said on Saturday they want the state to challenge a part of the American Rescue Plan Act which limits states’ ability to cut taxes.
GOP senators and representatives are calling for tax reduction beyond the targeted relief backed by Gov. Ned Lamont (D). A major roadblock to greater decreases will be the COVID-relief bill President Joe Biden signed into law last year. The act included $195.3 billion in recovery funds for states and barred states accepting allocations from using them to “directly or indirectly offset a reduction in net tax revenue… or delay the imposition of any tax or tax increase.”
Gov. Ned Lamont (D) this week signed legislation suspending Connecticut’s 25-cent-per gallon gasoline tax.
The gas-tax holiday passed both houses of the state legislature unanimously and will last through the end of June. Also to ease Nutmeggers’ economic woes in light of skyrocketing inflation, the state is also providing free bus service to residents throughout April.
Gov. Ned Lamont (D) this week proposed a holiday from the state’s 25-cent-per-gallon gasoline tax to last through the month of June.
He said he does not believe the gas-tax break can be extended beyond July 1 insofar as Connecticut’s acceptance of federal funds under President Joe Biden’s American Rescue Plan Act (ARPA) restricts the state as to how much it can reduce taxes. The governor also voiced concern that a longer tax holiday would compromise the state’s ability to fund transportation. The gas tax’s suspension will cost the state over $90 million.