Rep. Zullo Votes “No” on State Budget that Hikes Taxes $1.7B

HARTFORD – State Representative Joe Zullo railed against the two-year state budget voted out of the House on Monday, which results in more spending and higher taxes that Connecticut taxpayers and small businesses will be forced to absorb.

“Connecticut families and businesses are leaving this state in record numbers and jobs are not rebounding in Connecticut as they are elsewhere across the country. Now, the majority party’s answer to fixing our state’s economy is to increase taxes by over $1.7 billion dollars and increase spending by another $1 billion dollars. We were forced down this same road under Governor Malloy, and we saw how it ended. Now, we’re repeating the insanity under Governor Lamont, with another ‘tax and spend’ budget that will continue to make it harder for middle class families and small businesses to make ends meet.”

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

1. Digital downloads
2. Prepared food from grocery stores and restaurants
3. Plastic bags
4. Soda & Alcoholic beverages
5. Bus fares
6. Dry cleaning
7. Parking
8. Rideshare services
9. Safety Apparel

In addition, the budget increases filing fees for businesses and changes the pass-through entity tax, which will result in a $50 million tax increase for all of the State’s small businesses.

Rep. Zullo noted, “During my special election campaign, I promised East Haven residents that I would oppose initiatives that raised taxes. This session, I opposed a number of reckless proposals that increased spending and imposed new, expansive requirements on small businesses.”

Rep. Zullo added, “Republicans didn’t sit on the sidelines during this year’s budget debate. We offered a number of amendments that would have made the budget better for taxpayers and businesses, all of which were summarily rejected by the majority party.”

Republican amendments included initiatives to:

1. 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;
2. 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;
3. 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 by a vote of 86 to 65, and now awaits action by the Senate.

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