Free Daily Headlines :

  • COVID-19
  • Vaccine Info
  • Money
  • Politics
  • Education
  • Health
  • Justice
  • More
    • Environment
    • Economic Development
    • Gaming
    • Investigations
    • Social Services
    • TRANSPORTATION
  • Opinion
    • CT Viewpoints
    • CT Artpoints
DONATE
Reflecting Connecticut’s Reality.
    COVID-19
    Vaccine Info
    Money
    Politics
    Education
    Health
    Justice
    More
    Environment
    Economic Development
    Gaming
    Investigations
    Social Services
    TRANSPORTATION
    Opinion
    CT Viewpoints
    CT Artpoints

LET�S GET SOCIAL

Show your love for great stories and out standing journalism

Progressive legislators to Lamont: Tax the rich and expand support for poor and middle-class

Caucus says it's prepared to fight for its ideals

  • Poverty
  • by Keith M. Phaneuf
  • February 3, 2021
  • View as "Clean Read" "Exit Clean Read"

Thomas Breen :: New Haven Independent

Rep. Robyn Porter, D-New Haven (right) and Sen. Julie Kushner, D-Danbury (left)

One week before his next budget proposal is due, 30 of Gov. Ned Lamont’s fellow Democrats challenged him Wednesday to embrace what he strongly opposes — tax hikes on the rich and lifting spending limits — to invest billions in those most hurt by the pandemic.

The “Recovery Champions” coalition not only urged the governor to expand health care for the poor and pump hundreds of millions of dollars more into struggling municipalities but also pledged to fight for these ideals in late spring — when Lamont likely needs their votes to pass a budget.

The progressive Democrats outlined more than $4 billion in revenue-raising options for Lamont to consider — all aimed at the state’s highest earners and major corporations.

That doesn’t mean all of the options would be necessary, they said. But the goal is to raise enough not only to enhance core services amid the coronavirus pandemic but also to finance major tax relief for low- and middle-income households.

“Extreme conditions call for extreme measures,” said Rep. Robyn Porter, D-New Haven, who co-chairs the legislature’s Labor Committee. “It is time for us to think outside of the box.”

“The most recent election showed people really want a different direction, they want fairness, they want equity,” said Rep. Quentin Phipps, D-Middletown, co-chairman of the legislature’s Black and Puerto Rican Caucus.

Fairness begins, the coalition argued, with reforming the tax system in a state marked by some of the most extreme income and wealth inequality in the nation.

A wide array of potential tax increases on the rich

The single-largest revenue raising option they offered Lamont would leave Connecticut with the highest state income tax rate in the Northeast — and the second-highest in the nation, behind only California’s top rate of 13.3%, according to the Tax Foundation, a nonprofit fiscal think-tank.

Couples more than $800,000 per year, and individuals topping $500,000, would pay a top rate of 8.82%, up from the 6.99% they currently pay.

And couples making more than $1.2 million annually, and singles exceeding $1 million, would pay a top rate of almost $12.7%.

The coalition projects this could raise as much as $2 billion annually in new revenue.

It also pitched a 5% surcharge on capital gains earnings from Connecticut’s richest households, which would generate about $850 million more in state income tax receipts.

Other proposals included:

  • Imposing a 2% statewide property tax on homes valued at more than $1.5 million, to raise more than $660 million per year.
  • Increasing the base corporation tax rate from 9% to 11.5% on companies with annual gross incomes in excess of $100 million and boosting the overall corporation tax surcharge to 20%. The coalition estimates this would raise as much as $300 million annually.
  • Reducing the exemption level within Connecticut’s estate tax to $2 million, to generate another $162 million per year.
  • Establishing a 10% tax on digital ads from companies with digital ad revenue topping $1 billion — such as Facebook and Google — to collect about $140 billion per year.

All of these ideas — and particularly the income tax hikes — are likely non-starters for Lamont. His budget office declined to comment.

Raising taxes on the wealthy would prompt them to flee Connecticut, according to the governor, who has said recently that it would be a particularly bad move now, while “we have the [economic] wind to our back.”

Progressives have chastised Lamont, a wealthy Greenwich businessman, for that last remark, noting that while stocks have fully recovered and grown in value since an early pandemic dip, huge chunks of Connecticut’s economy are hurting badly.

About 190,000 individuals continue to receive weekly unemployment benefits. By comparison, Connecticut lost 120,000 jobs in the last recession, which ran from December 2007 through mid-2009.

Connecticut’s hospitality sector in general, and restaurants in particular, remain fragile.

And cities and towns estimated last summer they’ve lost more about $400 million in revenue due to the pandemic.

“COVID certainly exacerbated the inequalities, exacerbated the challenges that we face,” said Sen. Julie Kushner, D-Danbury, the other co-chairwoman of the Labor Committee. 

State Sen. Julie Kushner, D-Danbury

“A fair recovery,” added Rep. Kate Farrar, D-West Hartford, “will reduce racial and economic inequality and leave no one behind in a strong economy.”

To help close that gap, the panel suggested a one-time state stimulus payment of $500 to the unemployed, which would cost the state about $75 million.

Long-term, recurring relief would come by bolstering the existing property tax and earned income tax credits within Connecticut’s income tax system, the coalition said. These measures would give low- and middle-income households an extra $220 million per year.

The coalition also called for an additional $900 million per year in aid to cities and towns, with about 60% of that directed to local school districts, which Kushner noted have faced many increased costs since the pandemic began.

And another $550 million would be invested annually in health care and social services. Eligibility for Medicaid and other subsidized health care would be expanded, with additional funding channeled to nursing homes and nonprofit social service agencies.

There isn’t close to enough room for these additional funds under Connecticut’s statutory spending cap, which tries to keep growth in most appropriations in line with increases statewide in personal income or inflation.

But the cap system can be legally exceeded with a 60% vote of the House and Senate. Porter said Lamont — who has said the next budget will remain under the cap — should reverse himself and declare a fiscal emergency.

Democrats, who hold majorities in the House and Senate, weren’t expecting much — if any — Republican support when the time comes to adopt the next state budget this spring.

But if progressive Democrats and Lamont don’t find middle ground when the time comes to vote, it will be hard for the legislature to adopt any budget.

Still, progressive lawmakers said Wednesday’s press conference won’t be the last time they push for a fairer budget and tax system.

“We’re committed to being here for the duration,” Kushner said.

“For us, the emergency is every present,” Farrar said. “I anticipate us looking to use our voices … not just today.”

Sign up for CT Mirror's free daily news summary.

Free to Read. Not Free to Produce.

The Connecticut Mirror is a nonprofit newsroom. 90% of our revenue comes from people like you. If you value our reporting please consider making a donation. You'll enjoy reading CT Mirror even more knowing you helped make it happen.

YES, I'LL DONATE TODAY

ABOUT THE AUTHOR

Keith M. Phaneuf A winner of numerous journalism awards, Keith Phaneuf has been CT Mirror’s state finances reporter since it launched in 2010. The former State Capitol bureau chief for The Journal Inquirer of Manchester, Keith has spent most of 31 years as a reporter specializing in state government finances, analyzing such topics as income tax equity, waste in government and the complex funding systems behind Connecticut’s transportation and social services networks. A former contributing writer to The New York Times, Keith is a graduate of and a former journalism instructor at the University of Connecticut.

SEE WHAT READERS SAID

RELATED STORIES
With billions in federal relief on the way to CT, legislators assert their role in deciding how to spend it
by Keith M. Phaneuf and Mark Pazniokas

With an unusual bill, state legislators are reminding Gov. Ned Lamont they have significant role in disbursing federal coronavirus relief.

Rep. Patricia Billie Miller wins vacant Senate seat
by Mark Pazniokas

Rep. Patricia Billie Miller, D-Stamford, won a special election to the state Senate.

CT hasn’t started collecting new payroll tax from state workers
by Keith M. Phaneuf

Connecticut established a new payroll tax surcharge on Jan. 1 but still isn't deducting it from state workers' paychecks.

Lamont’s budget offers another round of tax amnesty
by Keith M. Phaneuf

Gov. Ned Lamont’s proposal waives penalties and caps interest at 3% over each of the next two fiscal years.

Final passage of ‘Crown Act’ comes on unanimous vote
by Mark Pazniokas

With a unanimous vote, Connecticut became the latest state to adopt legislation prohibiting discrimination based on hairstyles associated with race.

Support Our Work

Show your love for great stories and outstanding journalism.

$
Select One
  • Monthly
  • Yearly
  • Once
Artpoint painter
CT ViewpointsCT Artpoints
Opinion The public health bill no one is talking about, but should be
by Brian Festa

On February 16,  the legislature's Public Health Committee conducted a public hearing on two bills, S.B. 568 and H.B. 6423, both of which would eliminate the religious exemption to mandatory vaccinations for Connecticut schoolchildren.  The hearing was capped at 24 hours, depriving nearly 1,500 members of the public who had registered for the hearing their opportunity to be heard.  The vast majority of those who did testify, and who submitted written testimony, opposed the bill.  The committee is expected to vote on the bill as early as  today. 

Opinion Students need more resources, fewer officers
by Tenille Bonilla

"School resource officer" is just a nice way to say cop. But what students really need is more resource and less officer.

Opinion The Board of Regents’ changes must not shortchange its students or faculty
by Carrie Andreoletti, PhD

As a university professor and a lifespan developmental psychologist, I tend to approach my work from a developmental perspective. This means I aim to foster a lifelong love of learning and to help others find a sense of meaning and purpose, as well as confidence in their ability to reach their goals. My approach to higher education is shaped by my desire to provide the best possible education for my students. This is why the recent Board of Regents’ proposed changes at the four state universities have me worried.

Opinion How to close schooling opportunity gaps created by the pandemic
by Carol Gale

We ask school district leaders to trust your public servants whose daily work life involves assessing student needs and planning or modifying instruction to meet those needs. Listen to their voices, as we have, and allocate precious resources on interventions that will offer increased opportunities for Hartford students to succeed.

Artwork Grand guidance
by Anne:Gogh

In a world of systemic oppression aimed towards those of darker skintones – representation matters. We are more than our equity elusive environments, more than numbers in a prison and much more than victims of societal dispositions. This piece depicts a melanated young man draped in a cape ascending high above multiple forms of oppression. […]

Artwork Shea
by Anthony Valentine

Shea is a story about race and social inequalities that plague America. It is a narrative that prompts the question, “Do you know what it’s like to wake up in new skin?”

Artwork The Declaration of Human Rights
by Andres Chaparro

Through my artwork I strive to create an example of ideas that reflect my desire to raise social consciousness, and cultural awareness. Jazz music is the catalyst to all my work, and plays a major influence in each piece of work.”

Artwork ‘A thing of beauty. Destroy it forever’
by Richard DiCarlo | Derby

During times like these it’s often fun to revisit something familiar and approach things with a different slant. I have been taking some Pop culture and Art masterpieces and applying the vintage 1960’s and 70’s classic figures (Fisher Price, little people) to the make an amusing pieces. Here is my homage to Fisher -Price, Yellow […]

Twitter Feed
A Twitter List by CTMirror

Engage

  • Reflections Tickets & Sponsorships
  • Events
  • Donate
  • Newsletter Sign-Up
  • Submit to Viewpoints
  • Submit to ArtPoints
  • Economic Indicator Dashboard
  • Speaking Engagements
  • Commenting Guidelines
  • Legal Notices
  • Contact Us

About

  • About CT Mirror
  • Announcements
  • Board
  • Staff
  • Sponsors and Funders
  • Donors
  • Friends of CT Mirror
  • History
  • Financial
  • Policies
  • Strategic Plan

Opportunity

  • Advertising and Sponsorship
  • Speaking Engagements
  • Use of Photography
  • Work for Us

Go Deeper

  • Steady Habits Podcast
  • Economic Indicator Dashboard
  • Five Things

The Connecticut News Project, Inc. 1049 Asylum Avenue, Hartford, CT 06105. Phone: 860-218-6380

© Copyright 2021, The Connecticut News Project. All Rights Reserved. Website by Web Publisher PRO