Rep. Carney Opposes Budget Full of Taxes and Spending
State Rep. Carney (R- 23) voted early Wednesday morning in strong opposition to Democrat-negotiated tax hikes and spending increases. The proposed budget, which passed the House without a single Republican vote, and 11 Democrat votes, increases spending $784.5 million in the next year and increases taxes $1.5 billion in the biennium.
According to Rep. Carney, some of the most appalling tax increases are those that affect Connecticut’s middle class. Those include reducing the property tax credit from $300 to $200, continuing the repeal on the tax exemption for clothing and footwear under $50, and reducing the phase out thresholds by $30k for married couples filing jointly and $15k for single filers. These result in a nearly $431 million tax increase over the biennium on the middle class. In addition the budget:
- Maintains the state’s 6.35 percent sales tax with .5 of that redistributed amongst municipalities based on the statewide car tax initiative, this will undoubtedly be another tax wherein the people of the 23rd will get back much less than they pay in
- Increases the luxury tax to 7.75 percent, which could reduce sales on products sold in the 23rd such as boats and cars over $50,000
- Increases the computer and data services tax from 1.0 percent to 2 percent in FY 16 and 3 percent in FY 17
- Implements a unitary tax on corporations
- Keeps the business entity tax as it is under current law despite the governor’s promise to repeal it
- Authorizes Keno gambling
- Diverts revenue from the Community Investment Act, which funds open space, to the general fund
- Taxes ambulatory surgical centers at 6 percent
Rep. Carney mentions how some of these taxes will have a devastating effect on Connecticut’s businesses and job creators; vital Connecticut-based companies like General Electric, Travelers and Aetna threatened to leave the state after catching word of the proposed Unitary Tax and extension of the surcharge on the Corporation Income Tax in the Democrats’ budget.
“When it comes to small businesses, this state has stifled the incentive for risk, investment and effort,” said Rep. Carney. “By taking away what the governor promised and not eliminating the small business entity tax and increasing overall corporate taxes by $504.6 million over the biennium, we are continuing to suppress small business growth and innovation. We are causing our businesses and residents to flee to other states; we cannot keep going along this path.”
The plan now 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.
Rep. Carney spent several days waiting for the budget to be called for a vote as the Democrat majority worked to find votes to pass their proposal. Finally, after five hours of debate, it passed Wednesday, June 3, at 10:30 a.m. on a 73-70 vote.
Rep. Carney, an unwavering advocate for the security of Connecticut’s jobs, considers these tax hikes on our middle class families, companies and job creators unconscionable. This, coupled with the removal of various tax exemptions will further incapacitate every resident and business. “I ran because I love and believe in this state, but we need to be wiser with our taxpayer dollars and spend less,” Rep. Carney added.