Connecticut lawmakers were expected to vote Wednesday on a tax bill that includes some changes proposed by Democratic Gov. Ned Lamont in February, but also a proposed capital gains tax he has opposed.
Democratic Sen. John Fonfara of Hartford, co-chairman of the General Assembly's Finance Revenue and Bonding Committee, described the revenue increases as "minimal." But the plan was expected to generate strong debate when members of the Democratic-controlled Finance Revenue and Bonding Committee consider the bill Wednesday afternoon.
The nonpartisan Office of Fiscal Analysis estimates that the package will increase General Fund revenues by more than $1 billion in fiscal year 2020. The increase is estimated at $1.3 billion in fiscal year 2021.
"No one should be surprised by the level of new taxes that will impact every person in our state. This budget contains much more than a tax on the wealthy. This includes higher taxes on everyone," said Senate Republican Leader Len Fasano of North Haven.
Fonfara defended the increases, arguing that lawmakers had to fill revenue gaps left by previous use of one-time revenues to balance the state's budget.
"The revenue increases in this bill are minimal, they are recurring, and they are predictable. That's the fiscally responsible thing to do," Fonfara said in a written statement.
Wednesday's scheduled vote comes a day after the Appropriations Committee approved a two-year, $43.3 billion spending plan. Ultimately, these bills will become the basis for negotiations between Lamont and state legislators on a final budget plan. They face a June 5 deadline.
But most attention has been paid to the revenue side of the budget and whether the committee's package would include some of the contentious changes proposed by Lamont, including applying the state's 6.35 percent sales tax to...
