Sales Tax Hike, Income Tax Hike: It’s All on the Table in ConnecticutApril 21, 2017
Two bills working their way through the legislature would raise the sales tax in Connecticut and raise income taxes for some.
The budget of Gov. Dan Malloy (D-Conn.) includes hundreds of millions of dollars in tax and fee increases. Next week, the Connecticut legislature will consider other tax hikes, with two bills that raise taxes working their way through.
On Friday morning, Fox 61 reported on a House bill that would raise the sales tax by two-thirds of a percent, from 6.35 percent to 6.99 percent. That’s a relative increase of 10 percent in the sales tax.
The bill would also raise some income taxes, according to Fox 61‘s Margaux Farrell:
Another aspect of the bill proposes increasing the income tax on the upper class. This would impact those making more than $500,000 annually. Currently, those people are taxed at a rate of 6.99 percent, but that number would go up to 7.49 percent if the bill passes. 7.49 percent would be the highest income tax rate since the tax was first introduced more than 25 years ago.
A committee bill published Wednesday proposes increasing the income tax rate on Connecticut’s wealthiest residents from 6.7 percent to 7.49 percent. It maintains the number of personal income tax brackets at six.
The proposal is part of a larger one that creates a 10 percent occupancy tax rate on bed and breakfasts and dedicates a portion of the taxes on hotels and lodging to promote and develop culture and tourism.
House Speaker Joe Aresimowicz (D-Berlin), a union employee, has not ruled out a sales tax hike. Aresimowicz also supports tolls in Connecticut, saying they “are coming” and “will be all over the place.”
It’s a long budget season, but it seems that, right now, income tax hikes, sales tax hikes, and tolls are all on the table in 2017.
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