Rep. Candelora votes against tax and spend increases, “smoke and mirrors”

Deputy Republican Leader, State Representative Vincent Candelora (R-86) today voted against the Democrat-negotiated budget package. The package includes an incalculable $1.5 billion in tax hikes on Connecticut’s middle-class, bases revenue on gambling projects like keno and increases taxes on struggling hospitals. Rep. Candelora and fellow Republican lawmakers opposed the Democrat-negotiated budget which includes a number of retroactive tax increases on an already over-taxed middle class and would further incapacitate Connecticut’s economy, employers and jobs. The Democrats’ budget eradicates the constitutional spending cap by not accounting for debt service and increases spending by $784.5 million over the next year without addressing outstanding debt – a huge component to Connecticut’s previous bookkeeping practices. These tax increases will undoubtedly hurt the middle class: while the sales tax remains at 6.35 percent, the clothing and footwear exemption has been removed. It is estimated that this will cost taxpayers $136.8 million in the first year and $142.6 million in the second year. The increases also include a reduction in the property tax credit from $300 to $200 beginning in FY17 and reductions that phase out thresholds by $30,000 for married filing jointly and $15,000 for single filers. “I look at this budget compared to four years ago when the margins were a little wider, four years ago a pretty terrible budget passed, but I can’t believe we are doing something so far devastating, never in my dreams would I ever imagined it – what we’re doing is smoke and mirrors. We are shifting tax burdens in areas where we have no idea what the ramifications will be,” said Rep. Candelora. Rep. Candelora put forth an amendment to counteract the setback of the Democrats’ budget. LCO No. 9355 which did not pass on the House Floor would have:

• Cut computer and data processing services rate from 2.5 percent back to 1.0 percent
• Eliminate unitary tax
• Achieve additional overtime savings
• Allow temporary, part-time, and season state employees to enroll in deferred compensation
• Plan instead of social security
• Reduce statewide marketing account in DECD

Rep. Candelora mentions how the taxes will impact Connecticut’s businesses and job creators; vital Connecticut-based companies like General Electric, Travelers and Aetna have threatened to leave the state due to the proposed Unitary Tax and Corporation Income Tax in the Democrats’ budget.     Visit https://www.youtube.com/watch?v=SiDIxzQ-FFo&feature=youtu.be to view Rep. Candelora on the House Floor. The plan passed the House on a 73-70 vote, with all Republicans and 11 Democrats voting in opposition and awaits action from the Senate. They have until midnight tomorrow to approve it or it dies. If this happens, the legislature will be forced to reconvene for special session and come up with a new plan by June 30. “This unitary tax could be particularly devastating to the state of Connecticut. Similarly, the data processing tax received public outcry during a public hearing four years ago. Most of these taxes didn’t get a public hearing this year. They were pulled out of thin air, thrown into a budget and then we let the people run around in panic mode trying to defend themselves – we don’t know the full effect of these taxes,” Rep. Candelora said. “I fear that if we go forward we will only see revenues decline more. We are slowing ourselves from economic recovery. The billions of dollars of taxes didn’t work four years ago, it stifled us, we are doing the same thing here today – but even worse. We have to stop this insanity.”