McGorty, Perillo & Kelly: Governor’s Budget Increases Taxes, Sets State Economy Back
The two-year budget unveiled by Governor Dannel Malloy before a joint session of the Connecticut General Assembly strikes hardest at those he claims to be helping according to State Representatives Ben McGorty (R-122), Jason Perillo (R-113) and State Senator Kevin Kelly (R-21). The Shelton legislators noted that the governor is violating his repeatedly avowed pledge to not increase taxes, and is continuing Connecticut down a path of policies that have produced anemic economic growth.
“The choices that have to be made in crafting a successful state budget are tough choices,” said Rep. McGorty. “But tough choices don’t have to be wrong choices. This budget fails to support all of the people the governor claims it helps, and delivers the tab for higher taxes and increased spending right to the middle class.”
“This budget represents more of the same failure to deliver for Connecticut’s families, seniors and college graduates hoping to find work in the state they grew up in,” said Rep. Perillo. “This budget extends the policies that have forced businesses to close, residents to leave and families to struggle. It also breaks the pledge he made not to increase taxes.”
“Tough decisions have to be made in any state budget, but balancing the budget on the backs of Connecticut seniors and others in need is not acceptable,” said Sen. Kelly. “The governor’s budget actually backtracks on the progress we have made regarding some aging in place initiatives. It puts additional burdens on seniors in CT, targeting the CT Home Care program and personal needs allowances that support seniors in nursing homes with limited budgets. The governor also reneges on multiple promises to support our families. This budget hurts Connecticut’s jobs environment and wrongly targets some of the most vulnerable in our state.”
The legislators noted that in his last budget the governor offered about $550 million in tax breaks which were conveniently set to take effect after the 2014 election. Now, this new budget rolls back all but $62 million of those scheduled cuts while raising $915.6 million in new revenue.
In addition, the legislators say the governor’s plan increases taxes a total of $103.4 million on individuals and $812.2 million inflicted on employers over two years, and also borrows hundreds of millions more for other projects pushing increased debt down the road for future generations.
Other elements of the governor’s proposed budget:
- Increases personal income taxes for single filers
- Lowers the sales tax rate, but eliminates exemptions including those on clothing and footwear, and lowers the threshold for the sales tax free week from $300 to $100, resulting in a net tax increase
- Cements the corporate surcharge tax indefinitely, hurting the state’s employers that he referred to as the “backbone of our economy”
- Increases the business registration fee required to file with the Secretary of State’s Office
- A massive increase in transportation spending without any indication as to how it will be paid for.
- Increases restrictions on tax credits corporations can claim to squeeze $350 million more out of Connecticut’s employers. This change could have a chilling effect on the state’s business environment by taking away a system employers have counted on to enhance economic development and job growth.
The budget now goes before the legislature’s Appropriations Committee. This session of the Connecticut General Assembly adjourns at midnight on Wednesday, June 3rd.