Sen. Markley: Ban the Retroactive Tax

February 16, 2012

Hartford, CT – Senator Joe Markley (R-Southington), one of the anti- income tax organizers of the 1990’s, has written a letter to the chair of the Finance Revenue and Bonding Committee asking for a ban on any retroactive tax.

“I think it would be a comfort for people to know that they are not going to get ambushed like they did last year,” said Sen. Markley.

The Democratically- controlled legislature and Gov. Dannel P. Malloy raised income taxes last year. Those higher rates took effect last Aug. 1. However, the increases were made retroactive to Jan. 1, 2011.

“Taxpayers were calling me saying that couldn’t be legal. Families and businesses which had budgeted for the year found themselves dealing with a double whammy: higher taxes collected at an accelerated rate,” Sen. Markley said.

In his letter to the Finance Chair, Sen. Markley wrote: Like our taxpayers, the state should create a budget and live within it, not resorting to double dipping of retroactive taxation to make our own ends meet.

The tax reach back period ended on December 31. The retroactive tax caused confusion for both employees and employers, including the State of Connecticut – which miscalculated people’s paychecks.

Sen. Markley is hopeful the Finance, Revenue and Bonding Committee will give his legislation a public hearing, so taxpayers can voice their opinions. The tax-writing committee is scheduled to start raising legislation February 24.