Dems Offer Tax Hikes, Malloy Offers a Tax BreakJanuary 30, 2017
Is there a disagreement in Connecticut's Democratic Party about budget priorities? As legislators float tax hikes for 2017, Gov. Dan Malloy (D-Conn.) is proposing a tax break for some.
On Friday, the Hartford Courant‘s Gregory Hladky reported that legislators are floating tax hikes as one way to mitigate an expected $1.4 billion deficit:
Ideas like creating a sugary drink tax or a new tax on plastic shopping bags have more to do with changing behaviors than raising money, but they’re also in this year’s mix, as are proposals for exempting smoke detectors or gun safes from the state sales tax. Ending state income taxation on social security and pensions is a popular idea, and taxing pot — medical or recreational or both — is also up for debate.
Hladky also reported that tax increases are off the table for Republicans (House Republican leader Themis Klarides said they’re not “even on the table”), but up for grabs with Democrats (“I think it’s anybody’s guess,” said Deputy House Speaker Bob Godfrey, a Democrat).
This makes an announcement from Gov. Dan Malloy (D-Conn.) on Monday all the more interesting:
Gov. Dannel P. Malloy announced … he would propose reducing the state’s insurance premium tax by one-seventh in his new budget next week, a move that would save insurance companies $11 million in 2017-18.
…By reducing the rate from 1.75 to 1.5 percent, the governor said, it would bolster ongoing efforts to improve an insurance industry that employs more than 58,000 people statewide.
Will Democrats support Malloy’s proposed tax break for a major industry in Connecticut? Will Malloy support the tax increases some Democrats want on the table? One thing is for sure: it will be a contentious budget season in Hartford.
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