Sen. Guglielmo; “This new budget proposal is destructive to everyone.”

May 4, 2011

Hartford, CT – In the early hours of Tuesday morning, Senator Tony Guglielmo (R-Stafford) voted “No” on the Democratic proposed budget package. The final vote tally was 19 to 17, with three Democrats joining Republicans in voting down the largest tax increase in state history.

“This new budget proposal is destructive to everyone,” said Senator Tony Guglielmo. The average family of four will see nearly a $1,500 increase in their overall taxes with this plan.

Senator Guglielmo speaks out against historic tax increases on the floor of the state Senate

Senator Guglielmo acknowledged on the floor of the Senate that it took many years to get into this fiscal crisis, but he stated now is the time to do the right thing.

“I have never seen such a fiscal mess in all of my time here at the legislature,” said Senator Guglielmo. “Hope is not a strategy. We need to make structural changes.”

Republicans have offered structural changes and a no tax increase plan. After listening to constituents concerns at a number of Town Hall Meetings, the consistent message at those meetings was ‘Don’t raise our taxes and cut state spending.’ The no tax increase alternative budget was voted down by the full general assembly.

Some of the new proposed taxes include:

  • Higher income tax
  • Sales tax increases from 6 percent to 6.35 %
  • Raises tax on cigarettes from $3 to $3.40 per pack
  • Alcohol excise tax is increased to 20%
  • Property tax credit is lowered to $300
  • Clothing and footwear under $50 will be taxed
  • Nonprescription drugs
  • Pet grooming services
  • Yoga studios
  • Automotive storage
  • Limousine services
  • Automotive towing services
  • Manicures and pedicures
  • Airport valet parking services
  • Cosmetic surgery services and spa services
  • Diesel taxes increase by three cents per gallon
  • 7 % luxury tax on cars $50,000, boats $100,000, jewelry $5,000, clothing $1,000.
  • “Amazon tax” for online purchase
  • Corporation tax increased from 10 to 20 %

The Democratic sales tax hike will be felt most by middle income families and businesses that pay more than 50 percent of all sales taxes in Connecticut.

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.