June 4, 2015

O’DEA OPPOSES BUDGET WITH MASSIVE TAX HIKES

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State Representative Tom O’Dea (R-125) cast his vote this morning against a state budget that increases state spending, unfairly and unnecessarily raises taxes on the middle class and hampers businesses across Connecticut. Debate on the budget, which was the result of negotiations between Governor Dannel P. Malloy and majority Democrats, began around 5:30 a.m.

The spending and tax package, which passed narrowly by a vote of 73-70 in the House without a single Republican vote, raises taxes on hard-working Connecticut families and businesses by more than $1.5 billion.

“The current tax and spend policies of the majority have failed to grow our economy or bring back jobs,” said Rep. O’Dea. “Members of the majority party have said over and over again that they want to help the middle class and improve our economy, yet this budget agreement causes immediate harm to both. Despite the promise that there would be no tax increase, we are being asked to foot a tax increase just as massive and sweeping as the one he called for four years ago as ‘shared sacrifice.’ However, once again, it is government that is sharing, and hard-working families that are sacrificing. ”

The budget also includes total income tax increases of $442.2 million over two years by increasing the tax rate on personal income, reducing the property tax credit from $300 to $200 in the budget’s second year, which impacts every homeowner in the state and comes on the heels of a previous reduction from $500 to $300 in 2011.

Additionally, the budget also repeals the clothing and footwear exemption which disproportionately affects the low and middle class, and maintains the state’s 6.35% sales tax despite earlier reports that rate would be reduced as an offset to the loss of the clothing exemption.

Of the $1.5 billion in new taxes, $475 million come from wiping out previously scheduled tax cuts for shoppers, businesses, insurance companies and the working poor before they even had a chance to take effect.

Other important parts of the budget include:

General fund (state) spending for Fiscal Year 16 is $784 million more than current year.
Busts through the constitutional spending cap.
Underfunds debt service, which will require more premiums and cost the state more in the long run
No attempt to make up unachieved SEBAC savings from governor’s plan
Does not include funding for the GAAP liability over the next two years, one of the Governor’s top priorities

The budget now heads to the State Senate for action there. The session adjourns at midnight, tonight.