HARTFORD, Conn. (WTNH) -- President Obama has interpreted last week's victory at the polls as validating his call to increase taxes on those making over 250 thousand dollars a year, but Connecticut voters may have unwittingly voted for state tax hikes as well by returning Democratic Majorities to the Connecticut House and Senate.
"I have no intention of raising taxes. I've been saying that for weeks. I have no intention of raising taxes," Gov. Malloy said.
But the sinking feeling at the state capitol is becoming obvious. A sharp plunge in the estimate of what the state is taking in from last year's tax hikes is raising red flags.
The downward plunge from taxes and declining casino receipts is so far in the range of $250M.
"Our State budget is in deficit to the tune of about a quarter of a billion dollars, only four months into a fiscal year. We have problems, serious problems," Rep. Larry Cafero said.
The Republican leader in the State Senate is accusing Democrats of moving the requirement for this budget estimate to after the election in order to hide the bad news.
Malloy calls that nonsense, that the change was done to avoid reporting on just half a month. He says wealthy Connecticut residents seeking to avoid next year's hikes in federal income taxes will end up helping balance his books because they'll end up paying much more in state taxes at the end of the year.
"Before the election, what I said is, if the President is re-elected, I suspected that that would mean an uptick in income coming in December, January and February as people try to front load their Capitol Gains and other gains," Gov. Malloy said.
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OverTaxed | November 13 2012 11:52am
How do you enact the largest tax increase in CT history with no improvement in the budget????? Malloy increased taxes on everything..... clothing, income tax, sales tax, reduced the property tax credit, additional Hotel tax, spa tax and the list goes on. He even got some concessions from state workers...why is there still a huge deficit???? Maybe because he also increased spending...why would you give an earned income credit when our buget is in the red?? Oh lets not forget the trains he wants to build, the Uconn facility....We need to BALANCE the budget before we can give out more freebies. As much as I hate when taxes go up, I had said well, if this means we can balance the budget...ok... but look what happened, what always happens...more spending with our money!! Keep voting them in and this state will be toast!
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