income tax News and In-Depth Reporting

Dramatically eroding CT income tax receipts complicate budget debate

by Keith M. Phaneuf April 24, 2017 @ 11:35 amAugust 1, 2022 @ 3:36 pm

Updated at 7:10 p.m.
New reports show dramatically eroding state income tax receipts that could expand the deficit in the next two-year budget by more than $500 million while depleting existing reserves. Although six more days remain before analysts complete their review of April income tax receipts, the new numbers also raise the prospect state government may have to borrow to balance the current budget.

Money, Politics

Democrats eyeing sales tax hike to plug holes in next CT budget

by Keith M. Phaneuf March 24, 2017 @ 5:00 amAugust 1, 2022 @ 3:36 pm

While Gov. Dannel P. Malloy continues to push spending cuts as the chief solution to Connecticut’s latest budget crisis, his fellow Democrats on one key panel say a more balanced mix of reductions and revenue might be unavoidable.

Money

Nonpartisan analysts cite eroding CT income tax receipts

by Keith M. Phaneuf February 27, 2017 @ 4:38 pmAugust 1, 2022 @ 3:38 pm

Nonpartisan analysts are tracking eroding state income tax receipts that could push the current state budget – and Gov. Dannel P. Malloy’s plan for the next two fiscal years – modestly into deficit.

Money

Children’s group says tax hikes must be part of CT budget fix

by Keith M. Phaneuf January 17, 2017 @ 9:56 amMarch 4, 2022 @ 11:06 pm

A progressive children’s advocacy group has issued the first call for a major tax increase to help solve the state’s latest budget crisis, outlining more than $3 billion in revenue-raising options.

Money

Administration’s final CT budget report has good news and bad

by Keith M. Phaneuf July 20, 2016 @ 5:10 pmMarch 4, 2022 @ 10:55 pm

The final report from Gov. Dannel P. Malloy’s administration on the just-completed fiscal year says the deficit for the 2015-16 fiscal year improved modestly, from about $316 million to $279 million, largely because of a last-minute surge in federal grants. But it also shows further erosion in tax receipts.

Education, Health, Justice, Money, Politics, Transportation

Nonpartisan analysts: Tentative CT budget wipes away lots of red ink

by Keith M. Phaneuf and Arielle Levin Becker May 11, 2016 @ 5:00 amAugust 1, 2022 @ 2:44 pm

The tentative plan to close a $1 billion hole in Connecticut’s finances starting July 1 also would wipe away more than 40 percent of the red ink threatening state government after the November elections, nonpartisan fiscal analysts reported Tuesday evening.

Money, Politics

CT’s top taxpayers took a big earnings hit last year

by Keith M. Phaneuf May 4, 2016 @ 1:01 pmAugust 1, 2022 @ 2:48 pm

Connecticut’s 50 largest state income tax filers reported nearly $3 billion less in quarterly earnings this spring than they did one year ago — which resulted in a $217 million hit to the state’s coffers, the legislature’s nonpartisan fiscal staff reported Wednesday.

Money, Politics

Volatile income tax receipts complicate effort to craft CT budget

by Keith M. Phaneuf April 26, 2016 @ 3:22 pmAugust 1, 2022 @ 2:49 pm

Unstable tax receipts are threatening to dash Democratic legislators’ hopes of adopting a new state budget this week. By midday Tuesday, earlier indications that income tax receipts might be on the rise — based on very preliminary data after the April 18 filing deadline – had evaporated.

Money, Politics

Senate Democratic leaders confident deficit-mitigation cuts will pass

by Keith M. Phaneuf March 24, 2016 @ 5:21 pmAugust 1, 2022 @ 2:54 pm

Leaders of the Senate’s Democratic majority announced Thursday they believe there is enough support to pass a plan next week to close most or all of the $220 million deficit in the current state budget.

Education, Health, Money, Politics, Transportation

Struggle to balance current budget could help with future deficits

by Keith M. Phaneuf March 22, 2016 @ 3:10 pmAugust 1, 2022 @ 2:54 pm

While legislators and Gov. Dannel P. Malloy scramble to close yet another hole in the current state budget, the exercise could help them solve a much larger problem. Depending on how they solve this fiscal year’s $220 million deficit — a task lawmakers have pledged to complete Tuesday — the $900 million hole built into 2016-17 finances could be whittled down by nearly one-quarter.

Money, Politics

Estate tax measure may preview 2017 state tax debate

by Keith M. Phaneuf March 22, 2016 @ 5:00 amAugust 1, 2022 @ 2:54 pm

The arguments surrounding a bill to eliminate Connecticut’s estate tax — a bill not expected to advance this year – might offer a preview of the battle some anticipate next year over the fairness of the state’s tax system.

Money, Politics

Labor in the crosshairs as budget crunch worsens

by Keith M. Phaneuf March 1, 2016 @ 5:00 amMarch 4, 2022 @ 10:48 pm

Connecticut’s labor leaders insist the writing is on the wall. Barring a dramatic new development, they say, state employees will be asked to grant wage and benefit concessions for the third time in seven years. But that doesn’t mean workers are ready to endorse more givebacks.

Health, Money, Politics

Malloy calls for bipartisan talks as budget hole deepens

by Keith M. Phaneuf and Mark Pazniokas October 19, 2015 @ 11:51 amMarch 4, 2022 @ 10:42 pm

Declaring that weak income tax receipts opened the second major state budget deficit in two months, Gov. Dannel P. Malloy took a new approach Monday, calling for bipartisan negotiations to cut spending, stabilize state financing and address the deeper question of how much government Connecticut can afford.

Money, Politics

CT staring at another $1B deficit after next state election

by Keith M. Phaneuf September 28, 2015 @ 5:30 amMarch 4, 2022 @ 10:41 pm

Since Gov. Dannel P. Malloy’s administration announced state income tax receipts were lagging due to weak stock market earnings, much of the Capitol’s focus has been on the relatively small hole it opened in the current budget. But the projected loss of $100 million in tax receipts this year also exacerbates a much bigger budget problem just down the road.

Money

Popular proposal for tax reform: Roll back recent increases

by Keith M. Phaneuf September 16, 2015 @ 7:47 pmMarch 4, 2022 @ 10:43 pm

A public hearing on how to reform Connecticut’s tax system evolved Wednesday — at least in part — into a critique of the $1.3 billion tax hike built into the two-year state budget legislators and Gov. Dannel P. Malloy approved earlier this summer.

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