Rep. Jason Perillo today said the Democratic budget that sets a record for tax increases of $1.8 billion will kill some industries, crush hard working wage earners and creates a $1 billion surplus on the backs of the middle class. He voted against the package which included, among other things, a new hospital tax which arbitrarily benefited and punished certain hospitals accross the state and placing quality of care in jeopardy (see video).
The Republican alternative budget has no new taxes, is balanced through spending cuts and would create a leaner state government. The Democratic budget is also $2 billion out of balance because union concessions counted on by the governor have not materialized yet.
The Democratic budget raises $1.8 billion in new taxes that will be felt at the gas pump, on checkout lines, in boat marinas and next April when taxpayers give more of their wages to state government. In between, property tax bills will go up because the Democrats cut by 40 percent the property tax exemption.
The legislators noted that the cost of doing business will also escalate because the corporate surcharge on companies was doubled from 10 to 20 percent. And businesses, which account for more than half of all sales taxes in business-to-business transactions, will be forced to pass those costs on to consumers.
A new tax increase on electric generation which will certainly be passed on to the consumers is included.
The sales tax will be raised from 6 percent to 6.35 percent on items already taxed to raise $138 million in the first year of the budget.
Other additional taxes that were raised:
• Luxury taxes on goods such as jewelry, cars and boats. Wedding dresses over $1,000 will cost more this summer;
• Rental car surcharges of 3 percent;
• Yoga instruction;
• Cigarette taxes go from $3 to $3.40 per pack;
• Selling a house will cost more beginning July 1 with the increase in the conveyance tax of .25 percent;
• A person earning $50,000 will have income taxes raised by 10 percent.
Aside from all the tax increases, numerous breaks and credits were eliminated and scores of higher motor vehicle fees will be implemented.