Massive Democratic tax increases – $3.3 billion in property, income, business and sales taxes – will likely destroy jobs, drive more residents from Connecticut and worsen the state’s recession, legislative Republicans said today.
The proposed Democratic tax and spending plan crafted in secret behind closed doors hits taxpayers the hardest and makes no attempt to reduce the size of state government at a time when families are cutting their household budgets. Taxes would be raised by $3.3 billion over two years. Someone earning $132,500 per year for instance, would be hit with a 20-percent tax hike.
“It is absolutely crucial that, in this year of significantly diminished revenue, the size of our state government must be reduced from levels that were supported by years of surplus to a size that more accurately fits with the present revenue stream,” said state Rep. Tim LeGeyt (R-Canton). “Many of our residents have indicated, through polls taken recently, that the absolute last option in this crisis would be to raise taxes – but the Democrats have burdened our residents first with billions of dollars in new taxes that will leave the State government bloated and out of balance.”
The Democratic budget spends more than Gov. Rell’s proposal and includes questionable savings that may never actually be achieved, Rep. LeGeyt said.
The Democratic budget highlights include:
• Tax increases on profitable corporations that employ thousands;
• A 20-percent income tax hike starting at $132,500 and tax hikes on higher brackets;
• Broadening the state sales tax;
• Elimination of some property tax exemptions for middle income families;
• No consolidation of governmental agencies to reduce costs as Gov. Rell and Republicans proposed.
The Democrats’ budget is expected to be voted on by the General Assembly sometime in the near future, perhaps as soon as April 7.
Rep. Tim LeGeyt (R-Canton) represents Avon and Canton in the General Assembly