Rep. Klarides-Ditria Opposes Tax Increase State Budget

HARTFORD – State Representative Nicole Klarides-Ditria said the two-year state budget passed in the House on Monday increases taxes by nearly $2 billion dollars and increases spending by $1 billion dollars.

“Legislative Democrats and the governor did nothing to cut spending, reduce the size of government, or create a sustainable pathway for future Connecticut budgets,” said Rep. Klarides-Ditria. “We still have major fiscal problems in this state and their only solution is to tax and spend more. It’s a shame that the new governor is taking the same path as past governors. We can’t continue to go down this same road.”

The budget crafted by legislative Democrats and the governor raises taxes on:

• Digital downloads
• Prepared food from grocery stores and restaurants
• Plastic bags
• Soda & Alcoholic beverages
• Bus fares
• Dry cleaning
• Parking
• Rideshare services
• Safety Apparel

In addition, the budget while eliminating the business entity tax increases business filing fees and changes the pass-through entity tax, which will result in a $50 million tax increase.

Rep. Klarides-Ditria said Republicans offered a number of amendments to help improve the state budget but they were all rejected by House Democrats.

The Republican amendments included the following:

• Preserve the property tax credits businesses receive operating as LLCs. The Democrats, just a year removed from implementing the credit, reduced it costing taxpayers $50 million in income taxes;
• Block the re-financing of the teachers’ pension fund that will cost the next generation of taxpayers $27 billion more because the payments will be stretched out for an additional 14 years;
• Block the diversion of $171 million over the next two years in new car sales revenue from the STF to the general fund.

The budget passed 86 to 65 and now awaits action by the Senate.