Connecticut Gov. Dan Malloy Signs $40.1 Billion Budget With Tax Hikes

HARTFORD, CT (AP / CBSNewYork) – Connecticut Gov. Dannel P. Malloy has signed his first budget into law, calling it tough, fair and honest.

WCBS 880 Connecticut Bureau Chief Fran Schneidau: The New Taxes And Tax Hikes Are Now Law

But the two-year, $40.1 billion plan that became law on Wednesday is not yet finished. It relies on $2 billion in labor savings over two years that have not yet been negotiated with state employees.

WCBS 880 Connecticut Bureau Chief Fran Schneidau: Layoff Notices Could Go Out This Week

Malloy says he’s still hoping a deal can be reached before layoff notices are sent to as many as 4,000 workers in the coming weeks. The first notices, effective July 1, could come as soon as Friday.

Republican lawmakers, the Legislature’s minority party, have strongly criticized the budget for raising taxes by $1.4 billion in the first year and $1.2 billion in the second. They say Connecticut taxpayers can’t afford the largest tax increase in the state’s history.

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

  • The Barefoot Accountant

    Connecticut Governor Daniel Malloy’s tax bill is very regressive, placing the burden of the deficit squarely on the shoulders of the middle class.

    If you are in the middle class in Connecticut, be prepared for a shocker. The Connecticut income tax rate is increasing anywhere from 10% to 30% over that of last year on middle class residents. Plus there are a number of other increases in taxes and fees on clothing, alcohol, tobacco, cigarettes, conveyance taxes, motor vehicle registrations, etc., targeting the wallets and pocketbooks of middle class residents.
    Of course, the rich in Connecticut are only experiencing a mere 3% increase in their Connecticut income tax rate over that of last year. Now that’s quite a disparity in increments in the state income tax rate between the rich and the middle class taxpayers in Connecticut, isn’t it? Is this sharing the pain of our pitiful economy?

    If Foley were Governor, perhaps I could understand the inequitable sharing of the economic pain here in Connecticut. But Daniel Malloy is a Democrat, isn’t he? Or is he?

    Daniel Malloy was born in Stamford and served as Mayor in Stamford. As you know, Stamford is located in Fairfield County, one of the richest counties in the entire United States. It is where many of the rich Wall Streeters live. You know, those CEOs of S&P corporations who earned on average over $11 million in 2009. Could it be that Malloy is a Democrat in sheep’s clothing?

    One can only wonder if Daniel Malloy is intentionally positioning himself right of the political center because of future political aspirations. This political strategy of inching to the right as the Republican Congress leaps to the right has worked very successfully for Democrats like Barack Obama and Bill Clinton. Recall that Obama raised $700 million in his run for President in 2008. Those Wall Streeters have a lot more money to contribute to candidates than you and I do.

    So expect to pay an additional 10% or more in Connecticut income taxes this year. And more in sales taxes, and other taxes and fees. And also be prepared to see that Connecticut property tax credit dwindle down to $300 from $500.

    Whatever happened to the progressive tax structure of Franklin Delano Roosevelt? Those happy days are not here anymore. And the way our political candidates have been positioning themselves, they will never be here again.

    For more specifics on the new tax bill, please see the article,

    The Barefoot Accountant

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