Kupchick & Devlin blast mammoth tax hikes on middle class families

A state budget proposal which includes tax hikes on middle-class property owners, bases revenue on gambling projects like keno, and increases taxes on struggling hospitals was strongly opposed by Fairfield State Reps. Brenda Kupchick (R-132) and Laura Devlin (R-134) today in the House of Representatives.

The tax and spend budget plan crafted by Governor Malloy and the Democrat majority relies on $1.6 billion in tax hikes and increases spending by $713 million over the next year which obliterates the constitutional state spending cap and doesn’t address the outstanding state debt – a huge component to Connecticut’s previous bookkeeping practices.

When word of the budget plan leaked out, one of Connecticut largest employers General Electric, which is headquartered in Fairfield, released a statement today that said the Connecticut tax increases are “truly discouraging” and the company would “seriously consider whether it makes any sense to continue” to remain in Connecticut.

“It is essential that Governor Malloy and legislative leaders find a more prudent and responsible path forward for Connecticut and its residents in their current budget negotiations,” the GE said.

One of the biggest objections the business community cited was the so-called “unitary” tax that would be imposed on Connecticut corporations for the first time. The system involves combined reporting for companies with operations in multiple states, such as GE. Under the unitary system, their taxes would increase by at least $27 million in the first year.

Additionally, the tax package would almost triple the sales tax on computer, data processing services and world wide web services from 1 percent to 2 percent in October 2015 and up to 3 percent in July 2017.

By the end of day on Tuesday, GE, Aetna, Travelers, IBM and Boehringer Ingelheim all voiced unease with the proposed tax changes and all mentioned how they might have to reevaluate maintaining a presence in Connecticut.

“This plan is disastrous for Connecticut. We are changing the rules of the game on businesses in our state. Businesses can’t do any long-term financial planning, whether that means hire more employees, investing in equipment or expanding their facility if the state continues annual way of shaping state business policy,” said Rep. Devlin. “Further, at a time when individuals and families are working paycheck to paycheck, it is unconscionable for the legislature’s Democratic majority to impose the second highest tax increase in our state’s history. Our citizens are tapped out – enough is enough.” said Rep. Devlin

“This plan is disastrous for Connecticut. We are changing the rules of the game on businesses in our state. Businesses can’t do any long-term financial planning, whether that means hire more employees, investing in equipment or expanding their facility if the state continues annual way of shaping state business policy,” said Rep. Devlin.

Rep. Kupchick said, “The threat of GE leaving Fairfield and our state is real and should give every state official pause. GE is a good neighbor and citizen of Fairfield losing them would devastate our town. We have to ask ourselves we really want to have companies’ wave goodbye to Connecticut forever, with Fairfield destined to become Detroit.”

Additionally, middle-class homeowners and car owners will see an increase in the income tax because the current maximum property tax credit of $300 would drop to $200. The maximum credit had been $500 in the past under Republican Gov. M. Jodi Rell.

According the Connecticut Business and Industry Association, which represents over 10,000 state businesses, the Democratic budget plan will make it much ‘more difficult to create and retain jobs in Connecticut’.

Both Kupchick and Devlin were dismayed that despite representing 42% (approximately 1.4 million Connecticut residents) of our state, Democrats left legislative Republicans out of the budget negotiation process. Republicans offered the only budget plan, the Blueprint for Prosperity, which did not have any new tax increases.

State Reps. Laura Devlin (R-134) and Brenda Kupchick (R-132).

State Reps. Laura Devlin (R-134) and Brenda Kupchick (R-132).

About author

By participating in the comments section of this site you are agreeing to our Privacy Policy and User Agreement

© HAN Network. All rights reserved. Fairfield Sun, 1000 Bridgeport Avenue, Shelton, CT 06484

Designed by WPSHOWER

Powered by WordPress