state income tax

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Malloy would bill towns for teachers’ pensions, cut middle-class tax credit

Gov. Dannel P. Malloy said Friday his proposed budget would shift $400 million, nearly one-third of the cost of municipal school teachers’ pensions, onto cities and towns next fiscal year — a move that would hit the state’s wealthiest communities the hardest. Continue Reading →

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Labor costs, tax receipts, threaten new CT budget before it starts

With Connecticut’s new fiscal year set to begin Friday, serious issues — involving both spending and revenue — have arisen in recent weeks that challenge state government’s new spending plan before it’s even begun. And a major Wall Street credit rating agency questioned Monday whether Connecticut’s fiscal house is in order. Continue Reading →

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CT counts on future legal settlements to mitigate eroding income tax receipts

Despite rapidly eroding state income tax receipts, analysts for Gov. Dannel P. Malloy’s administration and the legislature are counting on payments from future legal settlements and other sources to mitigate much of the likely tax revenue loss next fiscal year. Continue Reading →

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Lembo warns CT’s budget may not remain balanced for long

State Comptroller Kevin P. Lembo confirmed Friday that Connecticut’s finances are back in balance — for now. But the state’s chief fiscal watchdog reminded officials that Connecticut is due to test its revenues again shortly after the April 18 income tax filing deadline, and that the potential for more red ink remains very real. Continue Reading →

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Lembo reports $220M deficit, confirms eroding tax receipts

State Comptroller Kevin P. Lembo certified a $220 million deficit Tuesday for the current fiscal year, a report that largely echoes last week’s warning from the legislature’s nonpartisan analysts about eroding state income tax receipts. Continue Reading →

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Malloy warns of workforce cuts, affirms opposition to tax hikes

Gov. Dannel P. Malloy’s administration confirmed Friday the downward trend in state revenues — though not the precise numbers — that nonpartisan analysts reported earlier this week. While the governor never used the word “layoff,” he told reporters Friday that state government’s workforce must shrink considerably soon, and that the next state budget still must be balanced without tax hikes.
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Panel will consider plan to boost CT income taxes on the wealthy

The legislature’s tax-writing panel Wednesday will consider recommending an increase in income taxes on Connecticut’s wealthiest households, retroactive to Jan. 1, to help close the large deficit in the next budget, according to sources. The Democrat-controlled Finance, Revenue and Bonding Committee also will consider significantly extending the sales tax to new goods and services as part of a plan to overhaul non-education municipal aid and limit local car taxes. Continue Reading →

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Sales tax may take center stage in state budget debate

Leaders of the legislature’s tax-writing panel have made it no secret they hope to minimize new taxes on Connecticut corporations this year as politicians and business leaders alike hope for the economy’s best year since the Great Recession ended. But one key alternative the Finance, Revenue and Bonding Committee is expected to recommend this week involves a major overhaul of Connecticut’s sales tax – a move the state’s chief business lobby warns could damage the economy worse if handled improperly. Continue Reading →

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