Piscopo Opposes Budget with Massive Tax Hikes

HARTFORD – State Representative John Piscopo (R-76) today voted against the Democrat-negotiated budget package that includes $1.5 billion in tax hikes on Connecticut’s middle-class, bases revenue on gambling projects like keno and increases taxes on struggling hospitals.

Piscopo 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 cripple Connecticut’s economy, employers and jobs. The vote came following a turbulent 24 hours that saw even rank-and-file progressive Democrats waffle at their leaders’ plan after a handful of large employers said its deceptive business tax hikes could cause them to consider moving. Eleven Democrats joined the Republican opposition.

Republicans put forth several amendments on the House Floor to counteract the setback of the Democrats’ budget which were defeated.  Those include providing a supplemental grant of $46 million to hospitals, restoring funding for Resident State Troopers, restoring the exemption on clothing and footwear under $50, restoring the exemption for unitary tax on corporations, and implementing the constitutional spending cap.

However, the Democrats’ budget eradicates the constitutional spending cap by not accounting for debt service and increases spending by $713 million over the next year without addressing outstanding debt – a huge component to Connecticut’s previous bookkeeping practices.

“When I speak with various constituent groups in my district, be it farmers, the Chamber of Commerce, realtors, etc., questions are always asked if the legislature is honoring the spending cap, which keeps our spending restrained.  Polls continue to show that our constituents overwhelmingly want us to adhere to a strict spending cap.  For legal and moral reasons, it is important that we maintain fiscal discipline and stay within our spending limits as a state, and not spend more than we take in.  It is unfortunate that the governor and the Democrat controlled majority do not honor fiscal restraint to curb their current spending problem,” said Rep Piscopo.

The tax increases will directly hurt the middle class.  While the sales tax remains at 6.35%, the clothing and footwear exemption for items under $50 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.  The legislators also expressed concern over the fact that while Republicans produced a plan that respected the constitutional spending cap that they did not have a seat at the table during budget negotiations.

Referencing the Republican alternative budget, “Blueprint for Prosperity”, Piscopo added, “My Republican colleagues and I proved that we can fund programs for our neediest citizens in a balanced, responsible budget without raising one new tax.  It is a great disservice to the voters of Connecticut that we were not invited to the negotiating table.”

The plan which narrowly passed the House with a final vote of 73-70 now awaits action from the Senate. Though negotiated with Malloy, it wasn’t immediately clear Wednesday if the governor who repeatedly promised that he wouldn’t increase taxes would sign the budget into law.

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Click below to hear Rep. Piscopo comment on the Democrat budget plan that obliterates the spending cap.