Malloy Breaks Promise –New Budget Full of New Taxes

June 4, 2015

Sen. Kelly: This budget is a broken promise that Connecticut families are going to be saddled with.

Hartford, CT – State Senator Kevin Kelly (R-Stratford) released the following statement re: proposed state budget for FY 2016 – FY 2017 as negotiated by the democratic legislative leaders and Governor Dannel Malloy.

“Where ever I go people express outrage about taxes and the high cost of living in Connecticut. Whether it was a discussion with the employees at the Big Y deli, talking with neighbors at the Memorial Day parade where a gentleman walked up to me and pulled out his pockets and exclaimed ‘I have nothing left to tax’.

“The middle class family taxpayer is not a bottomless resource or a blank check. Our families are struggling, trying to pay our bills, meet our mortgages, get to work on time and raise our children as good citizens. But it is getting more and more difficult, and more and more taxes don’t make it any easier for that family. They are crying “Uncle, enough with the taxes!” and they are outraged.

“This budget continues to increase spending at more than 7% and after the largest tax increase in state history continues to tax people and business to the tune of $2 Billion. This budget is a broken promise that Connecticut families are going to be saddled with.

“Here is how this $40 billion budget WILL impact middle class families, businesses and veterans:

  • Reduces the Property Tax Credit from $300 to $200, impacting many individuals who own a home or a car. Totals a $152 million money grab by the state. 81% of those who utilize the tax credit have annual incomes less than $100,000; 66% have annual incomes less than $75,000; 44% have annual incomes less than $50,000.
  • Repeals the scheduled sales tax exemption for clothing/footwear under $50 and reduces the sales tax holiday from applying only to items under $100 instead of $300. Represents a $280 million tax hike.
  • Implements a 3% sales tax on the World Wide Web (including digital downloads and ebooks), a new $55 million tax.
  • Implements a sales tax on car washes, a new tax totaling $13.6 million.
  • Increases a luxury sales tax rate on engagement rings, wedding dresses to 7.75% totaling more than $4 million.
  • Delays the scheduled increase in the Personal Exemption for Single Filers. According to the Department of Revenue Services Personal Income Tax Study of January 2014, 90% of single filers had $75,000 or less of state income. Totals a tax increase of $10.8 million in FY 2016.
  • Reduces the burial benefit provided to indigent people by $400 giving their loved ones $1,400 to pay for a funeral.
  • Takes away funding for the Veterans honor guard which means no gun salute at a military service members funeral
  • Implements a sales tax on motor vehicle parking, a new tax totaling $12.2 million.
  • Taxes ambulatory surgical centers. A $35 million new tax.
  • Increases the Hospital Tax. A $410 million increase in taxes. Added costs will be passed onto patients.
  • Delays increase in Earned Income Tax Credit, a tax hike of $22 million on working class families
  • Triples the Computer Data & Processing sales tax rate, a tax hike of over $140 million.
  • A $500 million tax hike on businesses, which will make it difficult for employers to grow jobs and remain competitive. Jobs affect every single family in our state from all walks of life.

“What are Connecticut’s largest employers saying about Gov. Malloy and Connecticut Democrats’ plan to raise our taxes yet again?

Boehringer Ingelheim Pharmaceuticals, Inc. employs more than 47,000 worldwide said this:

  • “Implementing the current, short-sighted tax proposals will stifle innovation, especially research and development of critical medicines, and have far-reaching implications on our ability to plan and make long-term business decisions. The current proposal will undermine the financial feasibility of continued capital investments at our Ridgefield/Danbury site.”

Aetna, which employs 7,450, had this to say:

  • “Connecticut is in danger of damaging its economic future by failing to address its budget obligation in a responsible way. Such action will result in Aetna looking to reconsider the viability of continuing major operations in the state.”

General Electric, which employs 6,300, said this:

  • “Retroactively raising taxes again on Connecticut’s residents, businesses and services makes businesses, including our own, and citizens seriously consider whether it makes any sense to continue to be located in this state.”

Travelers, which employs 6,200 people, said the following:

  • “Raising taxes again will increase the cost of living for nearly every resident and small business in the state, negatively impacting our employees and customers.”

“I along with my fellow Republican legislators applaud these large employers and most importantly the people for speaking out.

“Adding insult to injury the budget violates the spirit of the spending cap put in place back in the 90’s when Connecticut sadly instituted the income tax. The people asked for a spending cap to protect the taxpayers forever. By not living within our means and not honoring the spending cap, our state turns its back on the overwhelming number of residents who are demanding that we honor the cap, but also, what about our children?

“I would never ask my children to pay my household budget that would be repugnant. But that is what the governor and anyone who supports this budget is doing. When the budget doesn’t live within its means, and it doesn’t adhere to the spending cap its wrong.

“Therefore I cannot and I will not support a budget that doesn’t honor the state’s constitutional spending cap nor live within its means, like the rest of Connecticut.”

The 21st District includes the towns of: Monroe, Seymour, Shelton, Stratford.