The biennial budget Gov. Dannel P. Malloy intends to propose today would erase a two-year, $2.5 billion shortfall with $1.6 billion in spending cuts and $900 million in additional revenue, an attempt to say he is equitably spreading pain while keeping a pledge not to raise taxes. Malloy, a Democrat re-elected last fall, is proposing a three-pronged approach to his second fiscal crisis in four years: deep spending cuts, combined with additional revenue raised by deferring promised tax cuts and boosting tax receipts without changing rates.
Sales Tax
Posted inMoney, Politics
Will Malloy’s new budget add up to a tax increase?
Gov. Dannel P. Malloy, in Middletown Monday, pitched his sales tax plan as middle-class relief, but he withheld details that would show whether his new budget would increase state taxes overall.
Posted inMoney, Politics
Malloy’s sales tax plan asks consumers to sacrifice – for now
Opting not to deliver the largest tax cut he campaigned on last year, Gov. Dannel P. Malloy tried to shift the conversation Sunday with a proposal to whittle down the sales tax rate. But while the middle-income relief the governor pitched is worth $70 million next fiscal year, tucked into that plan is the cancellation of a sales tax exemption on clothing worth twice as much.
Posted inMoney, Politics
Malloy would cut sales tax rate, but broaden its reach
Gov. Dannel P. Malloy says he will propose lowering Connecticut’s sales tax rate, while eliminating the partial exemption on clothing to produce a net tax revenue increase of $68 million in the next fiscal year. Malloy announced limited details of his plan Sunday on WFSB’s “Face The State.”
Posted inMoney, Politics
Malloy may use extra time to reset CT’s budget expectations
With two extra weeks before his next budget is due, Gov. Dannel P. Malloy may use that time to reset legislators’ expectations rather than to check his math or fine-tune any proposals.
Posted inMoney, Politics
Expert has idea that could lessen federal taxes for CT taxpayers
Connecticut’s low- and middle-income households could pay tens of millions of dollars less in federal taxes each year while state officials simultaneously gain access to a wealth of new economic data. But for that to happen, according to one of the state’s leading economists, Connecticut officials first take a fiscal leap of faith – and repeal arguably the state’s most popular tax break.
Posted inMoney, Politics
Malloy: Tax breaks likely for consumers, teachers, poor — maybe not business
Despite the likelihood of deep spending cuts in Gov. Dannel P. Malloy’s next budget, the prospects of tax relief for consumers, retired teachers and the working poor are good. But for Connecticut’s businesses – not so much.
Posted inMoney, Politics
Are CT cities and towns no longer immune from state budget axe?
Gov. Dannel P. Malloy spared cities and towns from the state budget axe as he grappled with deficits for much of the past four years. But with sales tax receipts promised long ago to municipalities still lying in the state’s coffers, GOP legislative leaders are worried the Democratic governor’s days of sparing local taxpayers are over.
Posted inMoney, Politics
Budget chief: Some tax cuts may have to wait; CT colleges likely to face cuts
Gov. Dannel P. Malloy’s budget director acknowledged Monday there’s little likelihood all of the tax relief promised on the campaign trail can be provided in the next state budget, which faces a major deficit projection. And while the governor promised new tax relief for college graduates struggling with student loan debt, budget director Benjamin Barnes said Connecticut’s public colleges and universities probably won’t be spared emergency budget cuts due out this week.
Posted inMoney, Politics
Connecticut gears up for 15th annual sales-tax-free week
Connecticut consumers will look to save an estimated $7- $9 million starting Sunday and running through Saturday, Aug. 23, as the state offers its 15th annual sales-tax-free week.
Posted inMoney, Politics
Malloy: CT budget and economy both poised to take off
Gov. Dannel P. Malloy doesn’t dispute there’s a sizeable hole in the next state budget – as nonpartisan analysts see things. He just thinks their perspective doesn’t reflect political reality. The Stamford Democrat says the situation is much rosier than the numbers show. And while there is more to do, his administration has positioned Connecticut’s finances and its economy for a prosperous future.
Posted inEducation, Health, Money, Politics
Foley has lots of confidence, few details, on plans to fix CT budget
To say Tom Foley is keeping his cards close when it comes to his plans to fix state finances might be an understatement. The Greenwich businessman and Republican gubernatorial contender’s positions on key income and business taxes and public-sector wages are guarded at best.
Posted inEducation, Money, Politics
Pelto: State budget deficit reveals a broken fiscal system
Former state Rep. Jonathan Pelto doesn’t have any trouble standing out from the rest of the 2014 gubernatorial candidates. For Pelto, a $1.4 billion shortfall – more than four years after the last recession ended – typifies a broken fiscal system that threatens Connecticut’s schools, state workers’ pensions, and middle class families.
Posted inMoney, Politics
GOP relies on Malloy ‘gimmick’ to balance its budget plan
Faced with shrinking state tax receipts, minority Republican legislators Thursday grudgingly used one of the largest “gimmicks” they had chastised Gov. Dannel P. Malloy for in their latest budget proposal.
Posted inEducation, Health, Money, Politics
New spending, tax breaks at risk as CT lawmakers try to close new budget gap
Gov. Dannel P. Malloy and his fellow Democrats in the legislature’s majority have some options to re-balance the next state budget – but none of them are nice.