Rep. Chapin blasts budget that would increase taxes by $3.3 billion

HARTFORD- State Rep. Clark Chapin, R-New Milford, sharply criticized a state budget proposal that would require a balance of $3.3 billion in new taxes. The Legislature’s Appropriations Committee and Finance, Revenue and Bonding Committee approved respective spending and tax plans on Thursday, April 2, that would “hurt families already reeling during this unprecedented economic downturn,” said Rep. Chapin.

Rather than consolidate government agencies to reduce costs as Governor M. Jodi Rell and Republicans proposed, the budget package that now goes before the full Legislature would instead establish:

• A broadening of the state sales tax;
• A reduction of property tax exemptions for middle income families;
• New corporate tax surcharges on businesses;
• A 20-percent income tax hike starting at $132,500 and tax hikes on higher brackets

The tax increases needed to sustain the budget would be the largest in Connecticut history. “The phase-out of the property tax credit is particularly burdensome on middle and working-class families, exactly the people who are struggling the most without relying on government assistance,” said Rep. Chapin.

Employing one time revenues from the Federal Stimulus Package and Rainy Day Fund would build enormous holes (deficits of $1.5 billion) in budgets for both Fiscal Years ‘12 and ‘13. For the first time ever, it would also borrow money to pay for local road maintenance.

Additional problems involve one-time gimmicks or potentially unachievable savings, including:

• $355 million in unidentified savings from state employees;
• $240 million in unidentified savings from Other Expenses throughout the budget;
• $56 million in unidentified savings from “agency enhancement”

“I’m amazed at how irresponsible these proposals are, given the present state of the economy,” said Rep. Chapin. “It’s clear that the majority party leaders are choosing to stick their heads in the sand with their fingers crossed, hoping that April 15 will be the end of this budgetary nightmare.”

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