State Rep. Tim LeGeyt (R-Avon/Canton) today voted against the largest proposed tax hike in state history, contending that another Democratic spending spree will only further cripple any economic recovery.
There is always more need than the state can afford to provide and we have to draw the line in this recession far short of the generous spending levels seen in prior surplus years. Several of the Democratic proposals will send Connecticut residents packing to states where the tax burden is leaner, with the unintended consequence that some tax increases will cause certain revenue streams to actually decline.
The Democratic plan relies on billions in “one shot’’ revenues such as the $1.4 billion Rainy Day Fund, $3 billion in federal stimulus money and “securitization’’ of $835 million in unspecified revenue streams. In two years, when the next biennial budget has to be approved, those “one shot” revenues will be gone and the state will have to raise taxes on more taxpayers to cover a projected $5 billion hole.
Other damaging aspects of the Democrat plan include:
• Hike the personal income tax on joint filers on those making $500K or more.
• 15% increase the tax on corporate profits to 8.625%
• A 30% surcharge on estate and gift taxes.
Legislative Republicans have twice proposed No Tax increase budget that are balanced and spend nearly $1 billion less than the Democrats’ latest version. Rep. LeGeyt said he believes it is still possible to craft a budget with more cuts, and less of an increase in revenues.