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“A Missed Opportunity to Move Connecticut in a positive Direction: You can’t tax yourself to Prosperity”

May 4, 2011

Hartford, CT – Early Tuesday morning, Senator Toni Boucher (R-Wilton) voted No on the Democratic tax heavy budget package. The final tally was 19 to 17. The tax hikes passed, with three Democrats joining Republicans in voting No.

Senator Boucher said, “The state is becoming too dependent on a small number of high earners and a group of lower Fairfield County towns. Fairfield County cannot continue to be used as the ATM for the State of Connecticut.

Senator Boucher points out that as population and jobs remain flat, the cost of running state government has skyrocketed, putting Connecticut at odds with its neighboring states.

“You can’t tax yourself to Prosperity”

“Taxpayers sacrificed last year, enduring one of the largest tax increases in the country, a new 10% tax on business and more borrowing for future expenses. The result plunged us further into debt. We lost 100,000 jobs and now have 9.1% unemployment, yet state government did not share the “pain”. After turning a blind eye to the hardships endured by Connecticut residents, taxpayers and businesses are asked to sacrifice again before any meaningful spending reductions are even considered. This is just plain wrong. With people and jobs fleeing the state, we cannot tax ourselves to prosperity” said Senator Boucher.

The $3 billion tax increase includes raising the state income tax to a maximum of 6.7 percent on the highest-earning individuals in Connecticut. The highest rate would be levied on all money earned by those at the highest level. For example, couples earning $1,000,000 per year would pay $67,000 per year on all income.

The income tax increases are retroactive to January 1, meaning that some individuals will need to recalculate the amount of their withholding.

20% of Connecticut residents pay over 80% of the state’s taxes. After meeting with hundreds of constituents, during eight town hall forums, the message was clear, ‘Stop spending our money, stop taxing us further. Enough is enough.’

Republicans had offered a no tax increase alternative. It was voted down. Highlights included:

  • No new taxes on any business, individual, employer, service or good.
  • More than $1.5 billion in spending cuts from Gov. Malloy’s plan.
  • Preservation of municipal aid at current levels for all towns and cities.
  • More than $46 million in savings through agency consolidations.
  • No borrowing for state operating expenses.
  • Full restoration of the $500 property tax credit cut by Gov. Malloy.
  • Restoration of the sales tax free week to help Connecticut consumers support household budgets.

The House later approved the tax increase package, but there are still $2 billion in union concessions unaccounted for in this budget. It will be the Governor’s responsibility to come up with a proposal to make up for any gap left after negotiations. The legislature is then required to approve, or reject the plan. The session does not end until June 8th.

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