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Malloy’s Last State of the State Address Today…Four Tax Talks to Expect

February 7, 2018 By Staff
Malloy’s Last State of the State Address Today…Four Tax Talks to Expect

The governor is giving his final "State of the State" address on Wednesday. He may mention up to four new tax proposals in his speech.

Gov. Dan Malloy (D-Conn.) will give his final “State of the State” address on Wednesday, and it comes days after a budget proposal – likely to be Malloy’s last proposal – that has higher spending and new tax and fee hikes.

To that end, Reclaim Connecticut expects Malloy to mention at least four tax proposals in his speech. Here’s a preview of what to expect.

TOLLS

Of course, Malloy led his 2018 with a massive plan to reinstate tolls in Connecticut, at the cost of $4 billion to $5 billion to taxpayers and drivers over the next 10 years.

Malloy is pushing tolls as a way to stabilize the state’s transportation fund, but Reclaim Connecticut readers appear to have no appetite for what is effectively a new tax on drivers.

NEW TRANSPORTATION TAXES

Also included in Malloy’s tolls proposal was at least $500 million over four years in new taxes – a seven-cent increase in the gas tax and a new tire fee are among the new “revenue proposals.”

NICKEL-AND-DIME PROPOSALS

Malloy may also cover his proposal to raise certain taxes and fees, or end exemptions and credits, as part of his new budget. These include:

  • $49.7 million from eliminating the $200 property tax credit
  • $34.2 million in cigarette, e-cigarette, and cigar tax hikes
  • $30 million from repealing a sales tax exemption for non-prescription drugs
  • $22.9 million from increasing the real estate conveyance tax
  • $20 million from expanding the bottle bill to other beverages

MARIJUANA

A wild card? Malloy may bring up marijuana. Reclaim Connecticut pointed out that Malloy’s inclusion of marijuana in his budget proposal is a shift for the governor, and it would be another major step if he mentions it in his budget address.