Malloy’s ‘Taxes & Tolls’ Plan an Effective Tax Hike of $4B-$5B Over 10 YearsFebruary 1, 2018
Hiding in the governor's own analysis are some shocking numbers: tax hikes and tolls will cost Connecticut taxpayers at least $4 billion to $5 billion over the next 10 years.
Gov. Dan Malloy (D-Conn.), the most unpopular governor in America, is giving Connecticut taxpayers a heck of a parting gift on his way out the door: an effective tax hike equal to between $4 billion and $5 billion over 10 years.
That’s how much revenue the state will raise, at a minimum, over the next 10 years, according to Malloy’s projections for his own transportation proposal.
Most of the $4 billion to $5 billion over the next 10 years comes from tolls, which Malloy’s administration estimates will raise between $600 million and $800 million a year once implemented in fiscal year (FY) 2023. At least $500 million comes from Malloy’s projections for new taxes in the next four years.
Here’s how the tax hikes, or effective tax hikes, schedule out over the next 10 fiscal years.
- FY 19: $47.1M
- FY 20: $119.9M
- FY 21: $161.7M
- FY 22: $187.9M
- FY 23: $600M-$800M+ (tolls)
- FY 24: $600M-$800M+ (tolls)
- FY 25: $600M-$800M+ (tolls)
- FY 26: $600M-$800M+ (tolls)
- FY 27: $600M-$800M+ (tolls)
- FY 28: $600M-$800M+ (tolls)
- 10-YEAR TOTAL: $4.12B-$5.32B
Importantly, Malloy’s analysis does not include how much the new gas and other tax hikes will raise in FY 23 and beyond. This means the $4 billion to $5 billion figure is a baseline, not a maximum.
An analysis from the Connecticut General Assembly’s Office of Legislative Research (OLR), from December 2017, found that Connecticut drivers would pay about 70 percent of tolls. Out-of-state drivers would pay only 30 percent.
That means that an overwhelmingly majority of the multi-billion-dollar burden over the next decade will fall on Connecticut drivers, and Connecticut taxpayers.
This may send Connecticut residents packing for new states … but not before they pay road tolls on their way out.
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