Democrats Unveil Massive Tax Increases

The massive Democratic tax increases – $3.3 billion in property, income, business and sales taxes – will destroy jobs, drive more residents from Connecticut and worsen the state’s recession, House and Senate Republicans said today.The proposed Democratic tax and spending plan crafted in secret behind closed doors hits taxpayers the hardest and makes no attempt to reduce the size of state government at a time when families are cutting their household budgets. Taxes would be raised by $3.3 billion over two years. Someone earning $132,500 per year for instance, would be hit with a 20-pe rcent tax hike.

“It is disappointing that the Democrats made their choices clear with this budget: raise billions in new taxes in a crushing recession without any honest attempt to reduce the size of state government,” House Republican Leader Lawrence F. Cafero Jr., of Norwalk said. “For months the Democrats have said everything was on the table but in the end only tax increases and borrowing against our kids’ future were.”

Senate Republican Leader John McKinney of Fairfield said, “The Democrats’ budget fails to make the hard choices necessary to make state government leaner and more efficient; the very same choices that families and businesses across the state have been forced to make as the result of this economic crisis. Instead, the Democrats rely on billions in new tax increases – the largest single tax increase in our history. Moreover, their budget relies entirely on borrowing to cover this year’s budget deficit, which the state Comptroller reported yesterday was more than $1 billion dollars. This amount of debt is simply irresponsible.”.”

The Democratic budget spends more than Gov. Rell’s proposal and includes phony savings that cannot be achieved the Republicans said. “The Democrats took the easy way out and chose tax hikes over the hard work of reducing the size of state government and achieving real savings,” Cafero said.

The Democratic budget highlights include:

• Tax increases on profitable corporations that employ thousands;
• A 20-percent income tax hike starting at $132,500 and tax hikes on higher brackets;
• Broadening the state sales tax;
• Elimination of some property tax exemptions for middle income families;
• No consolidation of governmental agencies to reduce costs as Gov. Rell and Republicans proposed.

The Democrats also indulged in budgetary chicanery slight-of-hand accounting measures, Republicans said.