Rep. Zupkus Blasts Budget with Massive Tax Hikes

HARTFORD – State Representative Lezlye Zupkus (R-89) 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.

Zupkus 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.

“The people of Connecticut should be outraged at this budget that was passed in the House by the majority party Democrats this morning.  A mere four years ago, the people of Connecticut were promised by the governor and majority party Democrats in the legislature that their shared sacrifice would put this state on the path to prosperity as they rammed through the largest tax hike in state history.  Yet here we are again, with the empty promises and failed leadership of the majority party having just past the second largest tax hike in Connecticut’s history, this time promising ‘brighter tomorrow’s’.  It is insulting, and incredibly disingenuous to our taxpayers,” said Rep. Zupkus, ranking member of the legislature’s Public Safety committee.

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 budget’s architects say it supports the governor’s expensive transportation initiatives, yet documentation shows most of the revenue collected for that purpose is diverted to programs unrelated to roads, highways and bridges.

Zupkus added, “We know that our constituents and businesses, big and small, are overtaxed. People are leaving this state because we are one of the most unfriendly states to do business in. People are struggling. They sit around their tables at home wondering if they are going to have a job, trying to make ends meet and pay their bills. The people of Connecticut deserve better than a budget which taxes our middle class and the employers that support it.”

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, and restoring the exemption for unitary tax on corporations.

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. 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 listen to Rep. Zupkus speak against the Democrat budget which raises taxes on middle class families and employers who support them.