None of the options are good for Democrats, who must decide whether to spread additional tax pain to low and middle-income residents or ask the state’s wealthiest to pay more.
income tax
Posted inPolitics
Stefanowski’s plan to eliminate income tax is conditional
Behind Republican gubernatorial candidate Bob Stefanowski’s bold promise to eliminate Connecticut’s income tax in eight years is a significant disclaimer not heard in any of his campaign ads: No cut is contemplated for two years. In fact, none are guaranteed at all.
Posted inMoney
Connecticut’s attempt to safeguard federal deductions may draw IRS heat
WASHINGTON – Fairfield First Selectman Mike Tetreau hopes to take advantage of a new state law aimed at blunting the impact on his town’s residents of a new cap on certain federal tax deductions. But the bold step the state has taken may face push-back from the IRS.
Posted inMoney
GOP offers compromise CT budget, taps tax windfall to bolster key programs
In a major move toward a bipartisan budget compromise, Republican legislators recommended more funding for social services, higher education, transportation and municipalities — and agreed to help pay for them by tapping about $300 million of this spring’s income tax windfall.
Posted inMoney
Dems reach out to Malloy as budget talks with GOP prove elusive
Updated at 6:30 p.m.
Saying Republican legislators are dragging their feet on budget talks, Democratic legislative leaders tried to re-kindle negotiations Tuesday with Gov. Dannel P. Malloy and explore crafting a budget without the GOP.
Posted inMoney
Would an April income tax bonanza tempt lawmakers to abandon fiscal reform?
If April state income tax receipts continue to grow, will legislators be tempted to abandon a new capping system that compels the state to save, rather than spend, much of these funds?
Posted inMoney
Fiscal panel’s formula for revitalizing CT provokes Democratic resistance
Progressive Democrats in the General Assembly pushed back Friday against the state’s new fiscal stability panel, charging its recommendations shortchange key priorities, like poor cities, education and social services.
Posted inMoney, Politics
Partisan rift threatens efforts to close CT budget deficits
Democratic and Republican legislative leaders, who returned this week to the Capitol to open the 2018 session, conceded they are sharply divided on how to wipe more than $400 million in red ink off Connecticut’s books. And while they also pledged to reach for a bipartisan compromise, no one expressed optimism this would be achieved before Connecticut’s next governor takes office 11 months from now.
Posted inMoney, Politics
Malloy to take one last shot at balancing CT’s books
Gov. Dannel P. Malloy will use the final budget proposal of his tenure next week to urge lawmakers to close a nearly $165 million gap in next fiscal year’s finances and mitigate much larger shortfalls facing his successor.
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Malloy blasts federal tax bills as an ‘abomination’
Gov. Dannel P. Malloy warned Thursday that the sweeping federal tax changes under consideration on Capitol Hill would devastate both Connecticut’s and the nation’s economies.
Posted inEducation, Money, Politics
Big deficits two years from now could undercut tax cut promises
While the new state budget promises an array of tax cuts two and three years from now, it also leaves the next governor and legislature to close a $4.6 billion projected shortfall — far larger than the deficit lawmakers addressed in the current plan.
Posted inEducation, Energy & Environment, Health, Money, Politics
House sends veto-proof, bipartisan budget to Malloy
With the final flourish of a veto-proof margin, the House of Representatives voted Thursday to give final legislative passage to an overdue, bipartisan budget crafted without the direct involvement of Gov. Dannel P. Malloy.
Posted inEducation, Health, Money, Politics
After 117-day marathon, Senate passes bipartisan budget
The Senate took a major step early Thursday toward ending Connecticut’s nearly 17-week budget impasse, overwhelmingly adopting a $41.3 billion, two-year plan that closes huge deficits without raising income or sales tax rates, imposes modest cuts on local aid, and provides emergency assistance to keep Hartford out of bankruptcy.
Posted inMoney, Politics
Coalition presses officials to reconsider taxing the rich
Advocates for social services, labor and municipalities appealed Wednesday for legislators and Gov. Dannel P. Malloy to consider higher income taxes on the wealthy, tolls, a sales tax expansion and other revenue hikes to avert deep budget cuts.
Posted inMoney, Politics
Malloy, CT lawmakers to begin closing $5B in red ink
Gov. Dannel P. Malloy and legislative leaders get down this week to the daunting task of closing the largest state budget gap since the last recession — one that has grown enough over the last two weeks to leave all previous plans massively out of balance.