Some are calling this a radical idea:
Senate Finance Committee Co-Chair Senator John Fonfara is throwing the idea out there as a compromise instead of increasing capital gains taxes for the wealthiest in the state.
Fonfara said the 5 percent payroll tax will be deducted from your check. That means less income will be shown at the end of the year when paying federal taxes, meaning you’ll pay less to the federal government.
He said more money would end up in residents’ pockets when the state income tax is taken away.
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Now, for those making over $200,000 per year, there would be a smaller income tax – likely 1 to 2 percent – which is essentially what they’re paying now.
Governor Ned Lamont’s office said they need to learn more about the details. News 8’s George Colli got the same answer from Senate GOP Minority Leader Len Fasano.
Of course, it was Lamont’s campaign opponent – Bob Stefanowski – who ran on the idea of eliminating the income tax.
Stefanowski told Colli he questions whether the IRS would be okay with the loss in revenue from the state.
There are under four weeks left in this session, making this idea a heavy lift to pull off.
However, Senator Fonfara said if there is enough momentum, he thought it could be done.
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