‘Sad Day’: Conn. businesses, residents brace for $2B tax hike [Fox News]

June 2, 2015

Article as it appeared on FoxNews.com

He once promised to balance Connecticut’s books through spending cuts alone. Now Gov. Dannel Malloy says he’s ready to OK a nearly $2 billion tax increase.

A new budget, passed by the Democratic supermajority on Monday, will raise the state’s top tax bracket to 6.99 percent, from 6.7 percent, impose new taxes on businesses, and kill plans to cut the state’s sales tax.

“A brighter tomorrow will start with this budget today,” said Malloy in a statement a day before the final vote. “Most importantly, it helps us build a Connecticut for the long-term, making our state an even greater place to live, work, and raise a family.”

The new budget also kills a plan to reduce the state’s sales tax in October, from 6.35 to 5.85 percent. Along with the new tax hikes, Connecticut residents are expected to fork over $1.8 billion more in taxes in the next year.

Lawmakers hope it will help close what the administration says is a two-year $2.5 billion deficit.

Speaking in committee on Monday morning, state Sen. Scott Frantz said the tax hike represented “another sad day for Connecticut.”