Susan Johnson

Speaking of the new year, I am pleased to announce that significant relief is on the way for many Connecticut taxpayers! Keep scrolling to find out how three tax relief measures will help individuals and families of all ages in 2024.
 
Here are the sections in today's email:

• Let's Talk About It: Plans for 2024 in Windham
• Tax Relief in 2024

One of the architects of our community’s financial future joined my weekly public affairs show, “Let’s Talk About It.”  Windham Town Manager Jim Rivers discussed the highlights of 2023 and the goals for the new year. Economic development and growth are key themes.
 
Rivers explained that our community is in good financial shape thanks to sound financial decisions in the short and long run. Windham was one of a handful of towns in Connecticut to get its bond rating upgraded to AA last year. Other highlights include:

• Enrollment growth at our recreation center
• Completion of renovations at the Murray Building
• Plans developed to add new car wash and gas station in North Windham

Rivers made it clear that this is just the start, and he was excited to reveal some of the big plans for 2024, which include:

• Expansion of Lauter Park Splash Pad to include water slides & other features
• Improvements to town parks including LED lights at little league fields
• Continued renovation of the third floor of Windham Town Hall
• Grant requests to improve the Noznick property

Jim Rivers also talked about other investments, the importance of voting, increasing property values, the mill rate, and so much more. Please click on the video below to listen to the entire show.

As a result of fiscal responsibility and bipartisanship in 2023, I am pleased to announce that significant relief is on the way for many Connecticut taxpayers in 2024!

Three tax relief measures went into effect on January 1, including the largest income tax cut in state history, an increase in a tax credit aimed at the lowest-income workers, and an expansion of exemptions on certain pension and annuity earnings that will benefit the senior population.

Here's a closer look at the tax cuts, who specifically benefits, and how:

One million filers to benefit from income tax cuts:

The changes enacted in 2024 will see a decrease in the two lowest rates:

• The 3% rate on the first $10,000 earned by single filers and the first $20,000 by joint filers will drop to 2%.
• The 5% rate on the next $40,000 earned by single filers and the next $80,000 by joint filers will drop to 4.5%.

The relief targets middle-class tax filers and is capped at $150,000 for single filers and $300,000 for joint filers. This is the first time that rates have been reduced in the state since the mid-1990s and it represents the largest income tax cut enacted in state history. 

Connecticut’s Earned Income Tax Credit (EITC) for low-income workers becomes one of the largest in the U.S. 

The EITC in Connecticut is increasing from 30.5% to 40% of the federal EITC and will provide an additional $44.6 million in state tax credits to the approximately 211,000 low-income filers who receive the credit. More than 95% of filers who receive this credit are families with children.

The Connecticut EITC is a refundable state income tax credit for the lowest income working individuals and families that mirrors the federal EITC.

Expanding certain deductions for IRA distributions and pension and annuity earnings for seniors

The state budget eliminates the retirement income tax cliff by adding a phase-out for allowable pension annuity and IRA distribution deductions against the personal income tax.

Approximately 200,000 filers benefit from the currently enacted retiree exemption limits. It is estimated that with these changes, an additional 100,000 filers could benefit from the elimination of the retirement cliff via the exemption phase-out.